Why is Polychem falling/rising?

As of 04-Jul, Polychem Ltd's stock price is currently at 2,624.00, reflecting an increase of 17.45 (0.67%). The stock has shown a positive trend today, gaining after three consecutive days of decline, and has outperformed its sector by 0.83%. However, the stock has experienced a significant drop in delivery volume, which fell by 76.08% against the 5-day average, indicating reduced investor participation. Over the past week, the stock has risen by 4.96%, while its performance over the last month shows a substantial increase of 31.27%. Despite these short-term gains, the company has reported weak long-term fundamentals, including a -3.54% CAGR growth in operating profits over the last five years and a significant decline in net sales of -28.69%, which has negatively impacted investor sentiment.
In the broader market context, Polychem's recent performance contrasts with the Sensex, which has declined by 0.74% over the past week. While the stock has outperformed the benchmark in the short term, it has underperformed over the last year, generating a return of -10.05% compared to the market's positive return of 4.23%. This underperformance, coupled with the company's negative financial results and high valuation relative to its peers, suggests that while there may be short-term upward movements, the overall outlook remains concerning for investors.