Why is SMS Pharma. falling/rising?

As of 26-Jun, SMS Pharmaceuticals Ltd is experiencing a price increase, currently at Rs 246.50, reflecting a rise of Rs 7.05 or 2.94%. The stock has shown strong performance today, outperforming its sector by 2.86% and has gained 6.85% over the last three days. It opened with a significant gap up of 6.43% and reached an intraday high of Rs 258.35, indicating positive momentum. Over the past week, the stock has increased by 9.53%, although it has seen a decline of 6.63% over the past month. The company has reported positive results for the last nine consecutive quarters, with strong operating profit and cash reserves, which supports its recent price movement. However, the stock faces challenges with a high percentage of pledged promoter shares and relatively slow long-term growth in net sales and operating profit.
In the broader market context, SMS Pharmaceuticals has outperformed the Sensex in the short term, with a 9.53% return over the past week compared to the Sensex's 2.94%. While the stock has shown strong performance in the near term and has outperformed the BSE 500 over various periods, the long-term growth concerns and the increase in pledged shares could pose risks to its future performance. The stock's liquidity remains adequate for trading, but falling investor participation may indicate caution among investors. Overall, the recent price rise can be attributed to positive quarterly results and short-term momentum, despite underlying concerns regarding long-term growth and promoter share pledging.