Why is Virinchi falling/rising?

As of 21-Jul, Virinchi Ltd's stock price is currently at 30.29, reflecting an increase of 0.88 or 2.99%. The stock has been on an upward trend, gaining for the last four days and achieving a total return of 6.81% during this period. It has outperformed its sector by 3.49% today and is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. However, despite this positive movement, the stock has faced challenges, including a significant decline in profits over the past year, with a return of -8.71% and a staggering -94.7% drop in profits. Additionally, the company's weak long-term fundamentals, including a poor EBIT to Interest ratio and low Return on Equity, contribute to concerns about its sustainability despite its attractive valuation compared to peers.
In the broader market context, Virinchi's short-term performance is notably strong, with a 1-week return of +3.84% compared to a slight decline of -0.06% in the Sensex. However, over the longer term, the stock has consistently underperformed against the benchmark, with a -15.86% return over the past three years. The stock's liquidity remains adequate for trading, but a decline in delivery volume suggests a potential decrease in investor participation. The increasing proportion of pledged promoter shares also raises concerns, particularly in a falling market, which could exert additional downward pressure on the stock price.