Why is Zuari Industries falling/rising?

As of 30-Jul, Zuari Industries Ltd's stock price is currently at 302.00, reflecting an increase of 8.45, or 2.88%. The stock has shown strong performance recently, gaining 13.66% over the last three days and outperforming its sector by 2.27% today. It has also been trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating positive momentum. However, despite these short-term gains, the stock has faced significant challenges over the past year, with a return of -22.27% and a substantial decline in profits of -7404%. The company's weak long-term fundamentals, highlighted by a low Return on Capital Employed (ROCE) of 0.3 and a high Debt to EBITDA ratio of 70.03 times, contribute to a cautious outlook.
In the broader market context, Zuari Industries has outperformed the benchmark Sensex in the short term, with a 1-week return of +11.69% compared to the Sensex's -1.50%. This indicates that while the stock is experiencing a positive trend relative to the market, its long-term performance remains concerning, as it has underperformed the market over the past year. The company's flat results and declining profitability further complicate its outlook, suggesting that while there may be short-term gains, the underlying financial health poses risks that could affect future performance.