Why is Vinati Organics falling/rising?

As of 18-Aug, Vinati Organics Ltd's stock price is currently at 1,717.65, reflecting an increase of 49.65 or 2.98%. The stock has shown a positive trend recently, with a performance today that outperformed its sector by 1.96%. It has been gaining for the last two days, accumulating a total return of 5.38% during this period. The stock opened with a gain of 3% today and reached an intraday high of Rs 1725.45. Despite these short-term gains, the stock has underperformed over the longer term, with a -13.45% return over the past month and a -17.02% return over the past year. Factors contributing to the recent rise include high management efficiency indicated by a ROE of 16.68% and a low debt-to-equity ratio of 0.01, which may enhance investor confidence.
In the broader market context, the stock's short-term performance of +4.93% over the past week significantly outpaces the Sensex, which has only increased by 0.83% during the same period. However, it is important to note that the stock has consistently underperformed against the benchmark over the last three years, with a -21.67% return compared to the Sensex's +34.79%. This long-term underperformance, coupled with flat results in June and a high valuation indicated by a Price to Book Value of 6.4, raises concerns about its sustainability despite recent gains. Overall, while the stock is experiencing a short-term rise, its long-term outlook remains uncertain due to historical performance and valuation metrics.