Why is Ajmera Realty falling/rising?

As of 10-Jul, Ajmera Realty & Infra India Ltd is currently priced at 917.60, reflecting an increase of 4.3 (0.47%). The stock has shown a positive performance today, aligning with sector trends, and is trading above its 5-day, 50-day, 100-day, and 200-day moving averages, although it is below its 20-day moving average. The stock has experienced a 2.31% increase over the past week, contrasting with a slight decline of 0.06% in the Sensex. Despite a year-to-date decline of 14.98%, the stock has delivered a notable 22.88% return over the past year, outperforming the BSE500 in each of the last three annual periods. However, concerns about its long-term fundamental strength persist, highlighted by a low Return on Capital Employed (ROCE) of 9.62% and a high Debt to EBITDA ratio of 5.31 times, which may weigh on investor sentiment.
In the broader market context, while Ajmera Realty has shown a positive short-term return of 2.31% over the past week, the benchmark Sensex has remained relatively flat with a decline of 0.06%. This indicates that the stock is performing well compared to the overall market in the short term. However, the company's weak long-term growth prospects, as evidenced by a declining profit before tax and a low debt servicing ability, may deter long-term investors. Additionally, the absence of domestic mutual fund investment suggests a lack of confidence in the stock's valuation, which could impact its future performance despite recent gains.