Why is Rajapalayam Mill falling/rising?

As of 04-Jul, Rajapalayam Mills Ltd's stock price is rising, currently at 996.55, reflecting an increase of 49.55 or 5.23%. The stock has shown positive momentum, outperforming its sector by 4.41% today and achieving a consecutive gain over the last two days with a total return of 6%. It reached an intraday high of Rs 1020, and is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. However, despite this short-term performance, the company has a weak long-term fundamental strength, evidenced by a -215.55% CAGR growth in operating profits over the last five years and a low return on equity of 3.51%. Additionally, the company's recent financial results have been poor, with significant declines in profit before tax and profit after tax, indicating ongoing challenges.
In the broader market context, Rajapalayam Mills has outperformed the benchmark Sensex in the short term, with a 1-week return of +4.46% compared to the benchmark's -0.74%. However, the stock has underperformed over the longer term, with a year-to-date return of -11.41% against the Sensex's +6.77%. The lack of domestic mutual fund investment, which stands at 0%, suggests a lack of confidence in the company's future prospects, further complicating its market position. Overall, while the stock is experiencing a rise in the short term, the underlying financial weaknesses and long-term performance issues may pose risks for sustained growth.