Why is Rain Industries falling/rising?

As of 30-Jul, Rain Industries Ltd is currently priced at 157.00, reflecting an increase of 0.4 (0.26%). The stock has shown a positive trend recently, gaining 2.55% over the last two days, although it has underperformed its sector by 0.8%. In terms of returns, the stock has increased by 1.09% over the past week and 6.40% over the past month, contrasting with a decline in the benchmark Sensex, which fell by 1.50% and 2.54% respectively. Despite these short-term gains, the stock has a negative year-to-date return of -7.10% and has underperformed significantly over the longer term, with a decline of -11.12% over the past three years. Positive factors include an attractive valuation compared to peers and a 53.2% rise in profits over the past year, alongside increasing participation from institutional investors, who have raised their stake by 0.82%. However, the company faces challenges with weak long-term fundamentals, including a high Debt to EBITDA ratio and a negative CAGR growth in operating profits over the last five years.
In the broader market context, Rain Industries' recent performance contrasts with the benchmark, as it has outperformed the Sensex in the short term but has consistently underperformed over the longer term. The Sensex has shown a positive return of 4.28% year-to-date, while Rain Industries has declined by -7.10%. This divergence highlights the stock's struggle to maintain momentum despite recent gains, particularly in light of its historical underperformance against the benchmark over the past three years. The overall market conditions and the company's financial health will continue to influence investor sentiment and stock price movements moving forward.