Why is VL E-Governance falling/rising?

As of 30-Jun, VL E-Governance & IT Solutions Ltd is experiencing a price increase, currently at Rs 49.59, reflecting a rise of 2.36 (5.0%). The stock has shown a positive trend recently, gaining 10.49% over the last two days and outperforming its sector by 4.74% today. However, despite this short-term gain, the stock has significantly underperformed over longer periods, with a year-to-date decline of 72.97% and a one-year return of -25.25%. The company is facing substantial challenges, including operating losses and a weak long-term growth outlook, as evidenced by a drastic decline in net sales and operating profit over the past five years. Additionally, the stock is deemed risky due to negative EBITDA and a high PEG ratio of 3.3, indicating that while the stock price may be rising temporarily, the underlying fundamentals remain weak.
In the broader market context, the stock's recent performance contrasts sharply with the benchmark, as it has generated a return of -4.38% over the past week while the Sensex has increased by 2.09%. This consistent underperformance against the benchmark over the last three years highlights the stock's volatility and the declining participation from institutional investors, who have reduced their stake by 0.79% in the last quarter. The liquidity of the stock remains adequate for trading, but the falling delivery volume suggests a lack of confidence among investors. Overall, while the stock is currently rising, the long-term outlook remains precarious due to its fundamental weaknesses and historical underperformance.