Why is Rupa & Co falling/rising?

As of 30-Sep, Rupa & Company Ltd's stock price is currently at Rs 206.25, reflecting an increase of Rs 6.45 or 3.23%. The stock has shown positive momentum recently, gaining 3.51% over the last two days and outperforming its sector by 3.3% today. Despite this short-term rise, the stock has underperformed significantly over the past year, with a decline of 27.40%. The company's financials indicate a low Debt to Equity ratio of 0.09 and a fair valuation with a Price to Book Value of 1.6. However, the stock is trading at a premium compared to its peers, and its operating profit has decreased at an annual rate of -0.67% over the last five years, which raises concerns about long-term growth potential.
In the broader market context, Rupa & Company Ltd's recent performance contrasts with the Sensex, which has declined by 2.23% over the past week while the stock itself has gained 1.50%. This indicates that the stock is currently experiencing a positive divergence from the broader market trend. However, the company's consistent underperformance against benchmarks over the last three years, coupled with a lack of interest from domestic mutual funds, suggests that investor confidence may still be fragile. The stock's recent gains may be viewed as a short-term correction rather than a reversal of its longer-term downward trajectory.