Why is Vedavaag Systems falling/rising?

As of 02-Sep, Vedavaag Systems Ltd. is experiencing a price increase, currently at Rs 39.07, which reflects a rise of 2.66 or 7.31%. The stock has shown positive performance today, outperforming its sector by 7.24% and opening with a gain of 2%. It reached an intraday high of Rs 39.49, indicating strong investor interest, as evidenced by a significant increase in delivery volume by 84.7% compared to the 5-day average. Despite a year-to-date decline of 39.98% and a one-year return of -41.84%, the stock is trading at a discount relative to its peers, with a low Price to Book Value of 0.6. However, the company has shown weak long-term growth, with a low Return on Equity (ROE) of 5.7% and a concerning trend in net sales and operating profit growth over the past five years.
In the broader market context, Vedavaag Systems has outperformed the Sensex in the short term, with a 1-week return of +6.52% compared to the benchmark's -0.78%. This short-term outperformance contrasts sharply with the stock's long-term struggles, as it has consistently underperformed against the benchmark over the last three years. The presence of pledged promoter shares (27.28%) adds to the stock's vulnerability in a declining market, potentially exerting downward pressure on its price. Overall, while the stock is currently rising due to short-term factors and increased investor participation, its long-term fundamentals remain weak, which could pose challenges ahead.