Why is Alkem Lab falling/rising?

As of 01-Sep, Alkem Laboratories Ltd is currently priced at 5,320.00, reflecting an increase of 17.55 (0.33%). The stock has shown a trend reversal, gaining after five consecutive days of decline. Despite this recent uptick, the stock has underperformed in the short term, with a 1-week return of -1.94% compared to the Sensex's -1.56%. Over the past month, however, it has outperformed the benchmark with an 8.69% increase against a slight decline of -0.29% for the Sensex. The stock is trading above its 20-day, 50-day, 100-day, and 200-day moving averages, but below its 5-day moving average. Notably, there has been a decrease in investor participation, as evidenced by a drop in delivery volume by 11.86% against the 5-day average. The company maintains a high management efficiency with a return on equity (ROE) of 17.69% and a low debt-to-equity ratio, indicating a stable financial position.
In the broader market context, while Alkem Laboratories has faced a year-to-date decline of -5.51%, the Sensex has gained 2.85% during the same period, highlighting a significant underperformance relative to the market. Despite the recent price increase, the stock's longer-term performance remains concerning, with a one-year return of -13.58% compared to the Sensex's -2.43%. The company’s profits have risen by 4.9% over the past year, which, combined with a fair valuation indicated by a price-to-book value of 5.3, suggests that the stock may be undervalued compared to its peers. However, the high PEG ratio of 5.7 indicates that the stock might be considered overvalued relative to its growth expectations, contributing to the cautious sentiment among investors.