Why is Margo Finance falling/rising?

As of 25-Jul, Margo Finance Ltd's stock price is currently at 89.00, reflecting an increase of 1.5 (1.71%). The stock has shown strong performance recently, having outperformed its sector by 3.83% today and gaining 5.95% over the last two days. It opened with a significant gap up of 9.94% and reached an intraday high of Rs 96.2. Over the past week, the stock has increased by 1.14%, and it has delivered impressive returns of 105.83% over the past year, significantly outperforming the BSE500. However, despite these positive movements, the company has a weak long-term fundamental strength, indicated by a low average Return on Equity (ROE) of 0.08% and flat financial results in March 2025, which could temper investor enthusiasm.
In the broader market context, Margo Finance's recent gains come amidst a challenging environment for the finance/NBFC sector, which has declined by 2.12%. While the stock has performed well in the short term, its year-to-date performance remains negative at -34.66%, contrasting sharply with the Sensex's positive return of 4.25% for the same period. This divergence highlights the stock's volatility and the potential impact of its weak fundamentals on investor sentiment, despite its recent price increases.