Why is Virinchi falling/rising?

As of 16-Jul, Virinchi Ltd's stock price is currently at 28.55, reflecting an increase of 0.19 or 0.67%. The stock has shown a positive trend, gaining after two consecutive days of decline. It is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a potential upward momentum. Over the past week, the stock has appreciated by 11.92%, while its one-month return stands at 26.95%. However, it has faced challenges with a significant decline in delivery volume, which fell by 72.93% compared to the 5-day average. Despite a very attractive valuation with a low enterprise value to capital employed ratio and trading at a discount to peers, the stock has suffered from a substantial drop in profits, which fell by 94.7% over the past year, contributing to its overall negative return of -16.13%.
In the broader market context, Virinchi's recent performance contrasts sharply with the Sensex, which has declined by 1.08% over the past week and increased by only 1.02% over the last month. This indicates that the stock is outperforming the benchmark in the short term. However, the company's long-term fundamentals are weak, with a -12.33% CAGR growth in operating profits over the last five years and a low return on equity of 2.40%. Additionally, the high percentage of pledged promoter shares, which has increased recently, adds downward pressure on the stock in a falling market. Overall, while the stock is experiencing a short-term rise, significant long-term challenges remain that could impact its future performance.