Why is Vinayak Polycon falling/rising?

As of 02-Jul, Vinayak Polycon International Ltd is experiencing a rise in its stock price, currently at Rs 38.95, reflecting an increase of Rs 1.54 or 4.12%. The stock has shown strong performance today, outperforming its sector by 4.79%, and has been on a consecutive gain streak for the last four days, accumulating a total return of 24.36% during this period. It opened with a notable gain of 5% and reached an intraday high of Rs 39.28. Additionally, the stock has demonstrated impressive returns over various periods, including a 48.10% increase over the past year and a remarkable 193.96% rise over the last three years. However, it is important to note that the company's profits have declined by 8% over the past year, which could be a concern for investors despite the attractive valuation indicated by a 9% ROCE.
In the broader market context, Vinayak Polycon's short-term performance significantly outpaces the benchmark, with a 1-week return of 18.21% compared to the Sensex's 0.79%. This strong performance in both the near and long term highlights the stock's ability to attract investor interest, particularly as it trades at a discount relative to its peers. However, the company faces challenges such as weak long-term fundamental strength, evidenced by a low average ROCE of 4.83% and modest growth rates in net sales and operating profit over the last five years. These factors suggest that while the stock is currently rising, there are underlying issues that could impact its future performance.