Why is Softtech Enginee falling/rising?

As of 22-Jul, Softtech Engineers Ltd is currently priced at 391.30, reflecting an increase of 2.8 (0.72%). The stock has been gaining momentum, having outperformed its sector by 0.94% today and achieving a consecutive gain over the last two days with a total return of 2.18%. It reached an intraday high of Rs 403.1, indicating strong short-term performance. However, despite generating a 10.04% return over the past year, the company has faced challenges with a significant decline in operating profits and a weak return on equity, which may contribute to investor caution. Additionally, the falling delivery volume suggests a decrease in investor participation, which could impact future price movements.
In the broader market context, Softtech Engineers Ltd has outperformed the Sensex over the past week and month, with returns of +1.64% and +4.30%, respectively, while the benchmark has shown declines of -0.47% and -0.27%. This short-term outperformance may indicate positive sentiment among investors despite the company's long-term fundamental weaknesses, such as a poor EBIT to interest ratio and low profitability metrics. The lack of domestic mutual fund investment further highlights potential concerns regarding the stock's valuation and long-term prospects, suggesting that while the stock is currently rising, underlying issues may temper its future performance.