Why is Atul falling/rising?

As of 18-Nov, Atul Ltd. is experiencing a price increase, currently valued at 6,128.45, reflecting a rise of 113.15 or 1.88%. The stock has shown strong performance recently, gaining 7.77% over the last seven days and outperforming its sector by 2.86% today. It reached an intraday high of Rs 6,250, indicating positive momentum. Additionally, the company reported its highest net sales for the quarter at Rs 1,551.85 crore and a robust return on capital employed (ROCE) of 12.47%. However, the stock has faced challenges in the long term, with a decline in operating profit over the past five years and a return on equity (ROE) of 9.2, leading to concerns about its valuation.
Broader market context shows that Atul Ltd. has outperformed the benchmark Sensex in the short term, with a 1-week return of 6.49% compared to the Sensex's 0.96%. Despite this recent strength, the stock has underperformed over longer periods, with a year-to-date decline of 11.95% against the Sensex's gain of 8.36%. This consistent underperformance over the past three years raises caution among investors, despite the current positive trends and high institutional holdings at 33.28%, which suggest a level of confidence from more sophisticated investors.