Why is Sar Auto Prod. falling/rising?

As of 16-Jul, Sar Auto Products Ltd is experiencing a price increase, currently at Rs 1,524.00, reflecting a rise of Rs 49.00 or 3.32%. Today, the stock outperformed its sector by 3.44% and opened with a gain of 3.39%, reaching an intraday high of Rs 1,525. However, despite this short-term positive movement, the stock has shown a negative trend over the past month, with a decline of 12.29%, and a significant year-to-date drop of 19.79%. The company has weak long-term fundamentals, evidenced by a -4.85% CAGR growth in operating profits over the last five years and a poor EBIT to Interest ratio of 0.46, indicating challenges in servicing its debt. Additionally, the stock's performance has been hindered by negative results in recent quarters, including a 47.38% decline in net sales and a significant drop in profits.
Broader market context indicates that while Sar Auto Products Ltd has shown a short-term gain, it has underperformed the broader market significantly over the past year, with a return of -30.60% compared to a 2.38% increase in the Sensex. The stock's erratic trading pattern, with no trades on three days out of the last twenty, further highlights its volatility. Despite a rise in delivery volume, the overall sentiment remains cautious, as domestic mutual funds hold no stake in the company, suggesting a lack of confidence in its future performance. Thus, while there may be short-term gains, the broader context reveals significant underlying weaknesses that could impact future stock performance.