Why is Mercury Labs falling/rising?

As of 24-Jul, Mercury Laboratories Ltd's stock price is currently at 870.00, reflecting an increase of 13.75 or 1.61%. Today's price summary indicates that the stock outperformed its sector by 1.26%, despite opening with a loss of 3.53% and experiencing erratic trading, as it did not trade on one day out of the last twenty. The stock reached an intraday high of Rs 875, but also saw a low of Rs 826. Over the past week, the stock has gained 1.61%, while its one-month return stands at 7.38%. However, the company has shown weak long-term fundamental strength, with a -0.76% CAGR growth in operating profits over the last five years, and a significant decline in profits by -44.5% over the past year, leading to a negative return of -13.60% compared to the market.
In the broader market context, while the stock has shown positive short-term performance, it has underperformed significantly over the past year, with the benchmark Sensex generating a return of 0.99% compared to Mercury Laboratories' -13.60%. The stock's liquidity appears adequate for trading, but falling investor participation, as evidenced by a 92.5% drop in delivery volume, raises concerns about sustained interest. The company's high valuation relative to its peers, coupled with weak financial indicators such as a low return on equity of 5.9 and cash reserves at their lowest, suggests that despite the recent price increase, the stock may face challenges in maintaining upward momentum in the long term.