Why is Ashnoor Textile falling/rising?

As of 26-Jun, Ashnoor Textile Mills Ltd is experiencing a price increase, with its current price at 55.89, reflecting a rise of 2.89 or 5.45%. The stock has been gaining for the last three days, accumulating a total return of 12.8% during this period. It opened with a gain of 2% today and reached an intraday high of Rs 57, indicating strong momentum. Additionally, the stock has outperformed its sector by 4.53%. Despite a year-to-date decline of 21.30%, the stock has shown a robust one-year return of 31.69%, significantly higher than the market average. The company's attractive valuation, with a return on capital employed (ROCE) of 11.1 and a low PEG ratio of 0.1, further supports its recent positive movement, although it faces challenges with a high debt-to-EBITDA ratio.
In the broader market context, Ashnoor Textile's short-term performance has outpaced the benchmark, with a one-week return of 7.58% compared to the Sensex's 2.94%. This strong performance is indicative of rising investor participation, as evidenced by a significant increase in delivery volume. However, the company does face long-term fundamental weaknesses, including a low growth rate in net sales and disappointing quarterly earnings results. Despite these challenges, the stock's recent gains suggest that investor sentiment remains optimistic in the short term, driven by its attractive valuation and strong historical returns relative to the market.