Why is Welspun Investme falling/rising?

As of 27-Oct, Welspun Investments & Commercials Ltd is experiencing a significant rise in its stock price, currently at 1,338.20, reflecting an increase of 161.75 or 13.75%. Today's price summary indicates that the stock reached a new 52-week and all-time high of Rs 1,411.7, despite opening with a loss of 9.47%. The stock has shown strong performance over various periods, with a 14.82% increase over the past week and a remarkable 377.93% rise over the last three years. However, the company faces challenges, including operating losses and a weak long-term fundamental strength, which could impact investor sentiment. The stock's high valuation, indicated by a Price to Book Value of 0.7 and a PEG ratio of 6.6, raises concerns about its sustainability given the negative net worth and low returns on equity.
Broader market context shows that while Welspun Investments has outperformed the Sensex significantly in the short term, with a 14.82% increase compared to the benchmark's 0.49% over the past week, there are signs of falling investor participation, as indicated by an 87.87% drop in delivery volume on October 24. This decline in participation, coupled with the company's financial struggles, suggests that while the stock is currently rising, underlying issues may lead to volatility in the future. The limited interest from domestic mutual funds, holding only 0.02% of the company, further reflects a cautious outlook among institutional investors regarding the stock's valuation and long-term prospects.