Why is Reliance Power falling/rising?

As of 09-Sep, Reliance Power Ltd's stock price is currently at 46.64, reflecting an increase of 0.56, or 1.22%. The stock has shown a strong performance today, outperforming its sector by 0.96%. However, it is important to note that the delivery volume has decreased by 19.52% compared to the 5-day average, indicating a potential decline in investor participation. Over the past week, the stock has risen by 0.91%, and it has delivered impressive returns of 57.04% over the past year, significantly outpacing the negative return of -0.56% from the Sensex. Positive factors contributing to this rise include a higher profit after tax of Rs 170.25 crore and a record return on capital employed of 5.95%, alongside a substantial increase in cash reserves. Nevertheless, the stock faces challenges due to weak long-term fundamentals, including a decline in operating profits and a high debt-to-EBITDA ratio.
Broader market context shows that while the stock has outperformed the broader market, which has seen a decline of -2.87% over the past year, it has also experienced a significant rise of 142.92% over the past three years compared to the Sensex's 35.64% increase. This indicates that Reliance Power has been able to navigate market challenges effectively, although the low stake held by domestic mutual funds may suggest some caution regarding its valuation or business fundamentals. Overall, the stock's recent upward movement can be attributed to strong short-term performance metrics and positive financial results, despite underlying concerns about its long-term growth potential.