Why is Zota Health Care falling/rising?

As of 08-Jul, Zota Health Care Ltd's stock price is currently at 1,231.80, reflecting a decline of 57.95 points or 4.49%. Despite this drop, the stock has shown strong performance over the past week, gaining 12.96%, and has significantly outperformed the benchmark Sensex over various periods, including a remarkable 114.17% increase over the past year. Today's trading activity indicates that Zota Health Care is currently underperforming its sector by 3.56%, although it is trading above its moving averages across multiple time frames. The company has also seen a rise in investor participation, with delivery volume increasing by 34.69% compared to the five-day average. However, the stock faces challenges due to weak long-term fundamentals, including a significant -282.60% CAGR growth in operating profits over the last five years and a negative EBITDA, which raises concerns about its profitability and ability to service debt.
In the broader market context, Zota Health Care's recent performance contrasts with the Sensex, which has remained relatively flat with a -0.08% change over the past week. While the stock has shown impressive returns year-to-date and over the past three years, the current decline may be attributed to investor concerns regarding its long-term financial health, particularly its low return on equity and negative operating profit growth. The stock's risk profile is heightened due to its historical valuations and the significant drop in profits despite the high returns generated over the past year. This combination of strong short-term performance against a backdrop of fundamental weaknesses may be contributing to the current price decline.