Why is TruCap Finance falling/rising?

As of 26-Jun, TruCap Finance Ltd is experiencing a price increase, currently at 16.83, reflecting a change of 0.33 or 2.0% upward. The stock has shown significant performance in the short term, with a 10.29% increase over the past week and a remarkable 61.05% rise over the past month. It has outperformed its sector by 0.67% today and has been on a consecutive gain streak for the last 21 days, accumulating a total return of 50.54% during this period. However, despite this positive short-term performance, the company faces substantial challenges, including operating losses and a weak long-term fundamental strength, as indicated by a negative PAT of Rs -67.73 crore and a significant decline in profits over the past year. Additionally, the reduction in promoter stake by 1.45% suggests diminishing confidence in the company's future.
In the broader market context, while TruCap Finance has outperformed the Sensex in the short term, with a 10.29% return over the past week compared to the Sensex's 2.94%, it has consistently underperformed over longer periods, including a 66.96% decline in the last year against the benchmark's 6.46% gain. This consistent underperformance over the past three years, coupled with the company's high valuation relative to its peers, raises concerns about its sustainability in the rising price trend. The liquidity of the stock remains adequate, but the overall negative sentiment surrounding its long-term prospects may temper the enthusiasm generated by recent gains.