Why is Nagpur Power falling/rising?

As of 18-Sep, Nagpur Power & Industries Ltd is experiencing a slight increase in its stock price, currently at 103.35, reflecting a change of 0.31 or 0.3% upward. The stock has shown a notable performance over the last four days, gaining 7.66%, although it underperformed its sector by 2.41% today. In the context of benchmark returns, the stock has increased by 5.59% over the past week, while it has seen a decline of 3.00% over the past month. Positive factors contributing to the recent price movement include a significant growth in net sales and profit after tax in the latest six months, alongside a strong return on capital employed. However, the stock faces challenges due to weak long-term fundamentals, including a low return on equity and poor debt servicing capability, which may temper investor enthusiasm.
In the broader market context, while Nagpur Power's short-term performance has been relatively strong compared to its recent history, it still lags behind the Sensex, which has gained 1.80% in the past week. The stock's year-to-date performance shows a significant decline of 33.32%, contrasting sharply with the Sensex's 6.24% increase. This underperformance over a longer horizon, combined with the company's weak long-term growth prospects, suggests that while there may be short-term gains, the overall outlook remains cautious, reflecting investor sentiment that is wary of the company's fundamental weaknesses despite recent positive sales figures.