Why is Vinayak Polycon falling/rising?

As of 30-Jun, Vinayak Polycon International Ltd is experiencing a price increase, currently at Rs 35.90, reflecting a rise of 1.32 (3.82%). The stock has shown strong performance recently, gaining 14.62% over the last two days and outperforming its sector by 3.15%. It has also demonstrated impressive returns over various periods, including a 44.82% increase over the past year and a staggering 170.94% over the last three years. However, despite this positive movement, the company has faced challenges, such as a decline in profits by 8% over the past year and a weak long-term fundamental strength indicated by a low average Return on Capital Employed (ROCE) of 4.83%.
In the broader market context, Vinayak Polycon's short-term performance has significantly outpaced the benchmark, with a 1-week return of 8.03% compared to the Sensex's 2.09%. This trend of outperforming the market is evident in the stock's recent gains, which have been bolstered by its attractive valuation relative to peers. Nevertheless, the stock's liquidity has been affected by a decline in investor participation, as evidenced by a drop in delivery volume. Overall, while the stock is currently rising, its long-term growth prospects remain uncertain due to weak fundamentals and declining profits.