Why is Vinayak Polycon falling/rising?

As of 23-Jun, Vinayak Polycon International Ltd is experiencing a price increase, with the current price at Rs 33.23, reflecting a rise of 1.58 (4.99%). The stock has shown strong performance recently, gaining 13.76% over the past week and 35.52% over the past month. It has outperformed its sector by 5.59% today and has been on a consecutive gain streak for the last three days. Additionally, the stock is trading above all its moving averages, indicating positive momentum. However, it is important to note that while the stock generated a return of 62.57% over the past year, its profits have declined by 8%, suggesting some underlying weaknesses in its financial performance.
In the broader market context, Vinayak Polycon's short-term performance significantly outpaces the benchmark, with a 13.76% return in the last week compared to just 0.12% for the Sensex. This strong relative performance highlights investor confidence in the stock despite its long-term challenges, such as a weak return on capital employed and poor growth in net sales and operating profit over the past five years. The stock's attractive valuation compared to peers and rising investor participation may also contribute to its recent price increase, even as concerns about its long-term fundamental strength persist.