Why is Mega Nirman falling/rising?

As of 22-Jul, Mega Nirman & Industries Ltd is experiencing a price increase, currently at Rs 26.28, reflecting a rise of 1.2 or 4.78%. The stock has shown strong performance recently, gaining 19.45% over the past week and 13.13% over the past month. It has been on a consecutive gain streak for the last five days, with a notable opening gap up of 4.98% today. Despite touching a low of Rs 24 during the day, the stock's overall trading is above its moving averages, indicating positive momentum. However, the company faces challenges such as operating losses and a weak long-term fundamental strength, which could pose risks to its valuation despite recent gains.
In the broader market context, Mega Nirman's short-term performance has significantly outpaced the benchmark, with a 19.45% increase over the past week compared to a slight decline of 0.47% in the Sensex. Year-to-date, the stock has returned 29.84%, far exceeding the Sensex's 5.18%. While the stock has generated impressive returns over the past year, its operating profits have not kept pace, raising concerns about sustainability. The majority of shareholders being non-institutional may also contribute to the stock's volatility, as it reflects a less stable ownership structure.