Why is Mercury Labs falling/rising?

As of 15-Jul, Mercury Laboratories Ltd's stock price is currently at 880.00, reflecting an increase of 23.75 or 2.77%. The stock has shown positive momentum today, outperforming its sector by 1.52% and opening with a gain of 2.07%. It reached an intraday high of Rs 890, indicating strong buying interest. Over the past week, the stock has increased by 3.52%, although it has experienced a decline of 12.44% over the past year. Despite this recent uptick, the company faces challenges, including weak long-term fundamental strength with a -0.76% CAGR growth in operating profits over the last five years and a significant drop in profits of -44.5% over the past year. The stock is also trading at a premium compared to its peers, which may deter some investors.
In the broader market context, the stock's short-term performance has been favorable compared to the Sensex, which has declined by 1.36% over the past week. However, the stock's year-to-date performance remains negative at -1.79%, while the Sensex has gained 5.67% during the same period. This underperformance in the long term, coupled with flat results and low cash reserves, suggests that while the stock may be experiencing a temporary rise, the overall outlook remains cautious due to its historical underperformance against the market and weak fundamentals.