Why is ADF Foods falling/rising?

As of 09-Jun, ADF Foods Ltd is experiencing a price increase, currently at 275.50, reflecting a rise of 18.1 or 7.03%. The stock has shown a positive trend today, having gained after three consecutive days of decline, and opened with a gain of 2.95%. It reached an intraday high of Rs 285.7, indicating strong trading activity. Over the past week, the stock has outperformed the Sensex, with a return of 6.02% compared to the benchmark's 1.32%. Despite a year-to-date decline of 6.67%, the stock has generated a 23.76% return over the past year, outperforming the BSE 500 in the last three years and one year. However, the technical trend is currently sideways, suggesting a lack of clear momentum, and there has been a significant drop in investor participation, with delivery volume falling by 59.31% against the five-day average.
In the broader market context, ADF Foods' recent performance has been strong relative to the benchmark, particularly in the near term, as it has outperformed the Sensex. While the stock has shown positive returns in the short term, concerns remain regarding its long-term growth potential, as operating profit has only grown at an annual rate of 12.75% over the last five years. Additionally, the company's recent financial results indicate a decline in profit after tax and a low operating profit to net sales ratio, which may raise concerns about its valuation, as it trades at a premium compared to its peers. Overall, while the stock is currently rising, the mixed signals from its financial performance and market trends suggest caution moving forward.