Why is Softtech Enginee falling/rising?

As of 01-Jul, Softtech Engineers Ltd's stock price is rising, currently at 395.00, reflecting an increase of 11.2 or 2.92%. The stock has outperformed its sector today by 3.42%, reaching an intraday high of Rs 418, which is an 8.91% increase. Over the past week, the stock has shown a return of +6.94%, and +14.13% over the past month, indicating strong short-term performance. However, the company faces significant challenges, including weak long-term fundamental strength with a -8.33% CAGR growth in operating profits over the last five years and a low return on equity of 3.37%. Additionally, the stock is trading at a premium compared to its peers, and domestic mutual funds hold no stake, suggesting a lack of confidence in the company's valuation and business prospects.
In the broader market context, the Sensex has increased by 2.00% over the past week and 2.76% over the past month, indicating that while Softtech Engineers Ltd is performing well relative to the benchmark in the short term, it has underperformed year-to-date with a decline of -25.47% compared to the Sensex's gain of +7.11%. This disparity highlights the stock's volatility and the potential concerns investors may have regarding its long-term viability despite recent price gains.