Why is Swarnsarita Jewel falling/rising?

As of 01-Oct, Swarnsarita Jewels India Ltd is experiencing a price increase, currently at Rs 33.19, reflecting a rise of 1.69 (5.37%). The stock has shown positive momentum, gaining 6.51% over the last two days and outperforming its sector by 4.22% today. Despite this recent uptick, the stock has a year-to-date decline of 19.05% and a significant one-year drop of 40.66%. The company has a Return on Capital Employed (ROCE) of 7.2, indicating a very attractive valuation, and it is trading at a discount compared to its peers. However, the stock's long-term fundamentals are weak, with a high Debt to EBITDA ratio and a significant percentage of promoter shares pledged, which could exert downward pressure on the stock price.
In the broader market context, the stock's short-term performance contrasts sharply with the benchmark, as it has gained 2.63% over the past week while the Sensex has declined by 0.90%. This divergence highlights the stock's relative strength in a challenging market environment. However, the overall negative sentiment is underscored by the company's poor long-term growth prospects and a substantial decline in profits, which may limit its ability to sustain this upward movement. The stock's liquidity remains adequate for trading, but falling investor participation, as evidenced by a significant drop in delivery volume, raises concerns about future demand.