Why is NPR Finance falling/rising?

As of 02-Jul, NPR Finance Ltd is experiencing a price increase, currently at Rs 27.43, reflecting a rise of 1.41 or 5.42%. The stock has shown strong performance today, outperforming its sector by 6.65% and achieving a consecutive gain over the last two days, with a total return of 9.28% during this period. It has also traded above its moving averages across various time frames, indicating positive momentum. However, despite a year-on-year return of 18.69%, the company has faced challenges with a significant profit decline of 42.7%, which could raise concerns among investors about its long-term growth potential.
In the broader market context, NPR Finance's short-term performance of 1.63% over the past week surpasses the Sensex's return of 0.79%, suggesting that the stock is gaining traction relative to the market. While the stock has performed well recently, it is important to note that its long-term fundamentals are weak, with a low average Return on Equity (ROE) and declining net sales. This mixed performance, characterized by short-term gains against a backdrop of long-term challenges, may lead to cautious sentiment among investors as they weigh the stock's attractive valuation against its declining profitability.