Why is Parmax Pharma falling/rising?

As of 08-Jul, Parmax Pharma Ltd's stock price is currently at Rs 42.00, reflecting an increase of Rs 3.5, or 9.09%. The stock has shown a positive trend today, outperforming its sector by 10.02% and reversing a two-day decline. Over the past week, the stock has gained 7.69%, and in the last month, it has risen by 9.78%. Despite a strong one-year return of 35.48%, the company faces challenges with a negative book value and weak long-term fundamentals, as evidenced by a low annual growth rate in net sales and negative operating profits. The recent positive quarterly results and higher net sales have contributed to the stock's upward movement, but the declining investor participation and liquidity concerns may temper this momentum.
In the broader market context, Parmax Pharma's short-term performance has significantly outpaced the benchmark, with a 1-week return of 7.69% compared to the Sensex's negligible increase of 0.02%. While the stock has shown strong returns over the past year, it is important to note that its long-term growth prospects remain weak, as indicated by poor EBIT to interest ratios and a lack of sustainable profit growth. This combination of short-term gains against a backdrop of long-term challenges creates a complex picture for investors considering the stock's future trajectory.