Why is Mangalam Drugs falling/rising?

As of 08-Jul, Mangalam Drugs and Organics Ltd is experiencing a slight increase in its stock price, currently at 87.20, with a change of 0.11 (0.13%) upward. The stock has shown strong performance recently, gaining 10.34% over the last eight days and outperforming its sector by 1.06%. In the past week, it has risen by 7.14%, while over the past month, it has increased by 8.31%. Despite a significant decline of 24.80% year-to-date and 22.90% over the past year, the company has reported a remarkable profit increase of 176.5%, which, combined with its attractive valuation metrics, may be contributing to the recent positive price movement. However, the stock's long-term fundamentals are concerning, with a low return on equity and high debt levels, which could temper investor enthusiasm.
In the broader market context, Mangalam Drugs has outperformed the Sensex in the short term, with a 7.14% increase compared to the benchmark's minimal gain of 0.02% over the same period. This short-term outperformance may reflect a shift in investor sentiment, possibly driven by the company's recent profit growth despite its historical underperformance against benchmarks over the last three years. The stock's liquidity is also favorable, with a delivery volume increase of 19.63% compared to the five-day average, indicating rising investor participation. However, the overall weak long-term fundamentals and consistent underperformance against broader indices suggest that caution may still be warranted for potential investors.