Why is TruCap Finance falling/rising?

As of 11-Jun, TruCap Finance Ltd's stock price is currently at 13.58, reflecting an increase of 0.26 or 1.95%. The stock has shown a strong performance recently, gaining 56.99% over the last 16 consecutive days and outperforming its sector by 2.53% today. In the short term, the stock has returned +10.23% over the past week and +82.53% over the past month. However, despite these gains, the company faces significant challenges, including operating losses and a weak long-term fundamental strength, as indicated by a negative PAT of Rs -67.73 crore and a decline in net sales. Additionally, the promoters have reduced their stake in the company, which may signal a lack of confidence in its future prospects.
In the broader market context, while TruCap Finance has outperformed the Sensex in the short term, it has consistently underperformed over the longer term, with a year-to-date return of -21.05% compared to the Sensex's +5.60%. The stock's performance over the past three years has also been disappointing, with a decline of -82.65%, contrasting sharply with the Sensex's +51.95% return. This persistent underperformance, coupled with a high price-to-book ratio and a significant drop in profits, suggests that while there may be short-term gains, the long-term outlook remains precarious for TruCap Finance Ltd.