Why is Sita Enterprises falling/rising?

As of 04-Jul, Sita Enterprises Ltd is experiencing a significant rise in its stock price, currently at Rs 187.40, reflecting an increase of 17.0 or 9.98%. The stock has shown strong performance today, outperforming its sector by 9.85% and has been on a gaining streak for the last two days, accumulating a total return of 20.94% during this period. Additionally, the stock has demonstrated impressive returns over various time frames, including a 225.07% increase over the past year and a staggering 983.24% over the last three years. However, it is important to note that despite these gains, the company has a weak long-term fundamental strength, with an average Return on Equity (ROE) of 8.41% and a significant decline in profits by 59.9% over the past year.
In the broader market context, Sita Enterprises has outperformed the benchmark, the Sensex, which has seen a decline of 0.74% over the past week while Sita's stock surged by 31.74%. This strong short-term performance contrasts with the Sensex's modest gain of 3.01% over the past month. While the stock's recent price movement is buoyed by rising investor participation and favorable trading conditions, the high valuation compared to its peers and the flat results reported in March 2025 could pose risks for future performance. Thus, while the stock is currently rising, investors should remain cautious due to the underlying fundamental weaknesses.