Why is Virinchi falling/rising?

As of 22-Jul, Virinchi Ltd's stock price is currently at 30.20, reflecting a decrease of 0.09 or 0.3%. The stock has recently experienced a trend reversal, falling after four consecutive days of gains. Despite this decline, it is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a generally positive short-term trend. However, the stock has seen a significant drop in investor participation, with delivery volume falling by 16.86% compared to the 5-day average. Over the past week, Virinchi has outperformed the Sensex with a return of 6.49%, while its one-month return stands at an impressive 42.65%. Nevertheless, the stock has generated a negative return of 8.18% over the past year, alongside a dramatic 94.7% decline in profits, which raises concerns about its long-term viability.
In the broader market context, while Virinchi's short-term performance has been strong compared to the Sensex, it has consistently underperformed against benchmarks over the last three years. The company's weak long-term fundamentals, highlighted by a -12.33% CAGR growth in operating profits and a low return on equity of 2.40%, contribute to a bearish outlook. Additionally, the high percentage of pledged promoter shares (36.03%) adds downward pressure, particularly in a falling market. The stock's valuation appears attractive relative to peers, but the significant drop in profitability and the company's inability to service its debt effectively raise red flags for potential investors.