Why is Zim Laboratories falling/rising?

As of 23-Jun, Zim Laboratories Ltd is experiencing a rise in its stock price, currently at Rs 112.78, reflecting an increase of Rs 6.77 or 6.39%. The stock has shown strong performance today, outperforming its sector by 6.4% and achieving a consecutive gain over the last three days, with an overall return of 8.07% during this period. It reached an intraday high of Rs 116.16, although it also saw a low of Rs 103.71. The stock is trading above its moving averages across various time frames, indicating positive momentum. However, despite these gains, the company has reported a decline in profits over the past year, with a 29.5% drop, and has faced negative results for the last four consecutive quarters, which could temper investor enthusiasm.
In the broader market context, Zim Laboratories has outperformed the Sensex in the short term, with a 1-week return of 6.59% compared to the benchmark's 0.12%. While the stock has shown some positive short-term performance, its long-term growth prospects appear weak, as evidenced by a modest annual net sales growth of 6.41% over the last five years. Additionally, the lack of investment from domestic mutual funds, which hold 0% of the company, may indicate a lack of confidence in its future performance. This combination of short-term gains against a backdrop of long-term challenges presents a complex picture for investors considering Zim Laboratories.