Why is Prajay Engineers falling/rising?

As of 01-Jul, Prajay Engineers Syndicate Ltd's stock price is currently at 24.00, reflecting an increase of 0.95 or 4.12%. The stock has shown strong short-term performance, with a 7.58% gain over the last two days and a 19.17% increase over the past month, significantly outperforming the Sensex, which has risen by only 2.76% in the same period. However, despite these recent gains, the company faces significant challenges, including operating losses and a weak ability to service its debt, as indicated by a poor EBIT to Interest ratio of -10.69. The company has reported negative returns on equity and has seen a substantial decline in net sales and profit after tax, which raises concerns about its long-term fundamental strength.
In the broader market context, while Prajay Engineers has outperformed the benchmark in the short term, it has underperformed over the past year, with a return of -28.42% compared to the Sensex's 5.31% increase. This stark contrast highlights the stock's volatility and the risks associated with its current valuation, especially given the negative EBITDA and the falling investor participation, as evidenced by a decrease in delivery volume. The stock's liquidity remains adequate for trading, but the overall sentiment is cautious due to the company's financial struggles and the majority of shareholders being non-institutional, which may impact stability and investor confidence.