Why is Shubham Polyspin falling/rising?

As of 04-Jul, Shubham Polyspin Ltd is experiencing a price increase, currently at 26.20, reflecting a rise of 0.6 or 2.34%. The stock has shown strong performance in the short term, with a 5.77% increase over the past week and a significant 30.67% rise over the past month, outperforming the Sensex, which has declined by 0.74% in the same week. However, despite this recent uptick, the company faces challenges, including a weak long-term fundamental strength indicated by a -196.15% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 6.82 times. Additionally, the stock's delivery volume has fallen significantly, by 76.12% against the 5-day average, suggesting declining investor participation.
In the broader market context, while Shubham Polyspin has outperformed the Sensex in the short term, it has underperformed over longer periods, with a 5.26% increase year-to-date compared to the Sensex's 6.77%. The company's low profitability, as evidenced by an average Return on Equity of 5.31%, and negative operating profits raise concerns about its sustainability despite recent price gains. The stock's performance is risky compared to its historical valuations, and while it has generated a return of 7.60% over the past year, its profits have decreased by 12%, indicating potential volatility ahead.