Why is VL E-Governance falling/rising?

As of 21-Jul, VL E-Governance & IT Solutions Ltd is experiencing a price increase, currently at 49.82, reflecting a change of 0.97 or 1.99% upward. The stock has shown a positive performance today, outperforming its sector by 2.49% and has gained consecutively over the last two days, accumulating a total return of 4.01% during this period. However, despite this recent uptick, the stock has significantly underperformed over the longer term, with a year-to-date decline of 72.84% and a one-year drop of 44.95%. The company is facing substantial challenges, including operating losses and a weak ability to service its debt, which contributes to its classification as a strong sell. The negative EBITDA and poor long-term growth metrics, such as a -79.50% annual rate in net sales, further exacerbate the stock's risk profile.
In the broader market context, the stock's short-term performance contrasts with the benchmark, as it has only slightly outperformed the Sensex over the past week, with a return of -0.08% compared to the benchmark's -0.06%. Over the last month, the stock has declined by 3.24%, while the Sensex has seen a minimal drop of 0.25%. This underperformance is indicative of the company's struggles, especially as domestic mutual funds hold no stake in the company, suggesting a lack of confidence in its future prospects. Overall, while there is a slight uptick in the stock price recently, the underlying fundamentals and market sentiment remain concerning.