Why is Chemtech Indust. falling/rising?

As of 03-Jul, Chemtech Industrial Valves Ltd is experiencing a price increase, currently at Rs 120.45, reflecting a change of 1.4 (1.18%) upward. The stock has shown a trend reversal by gaining after three consecutive days of decline, and today it outperformed its sector by 1.24%. Despite this positive movement, the stock has underperformed in the longer term, with a one-week return of -3.21% and a year-to-date decline of -44.05%. The company reported positive results in its latest six-month period, with a profit after tax of Rs 3.28 crore, growing at 46.43%, and net sales reaching a record Rs 12.36 crore. However, it faces challenges with a weak long-term fundamental strength, indicated by a low return on equity of 9.88% and a high debt to EBITDA ratio of 3.81 times.
Broader market context shows that while Chemtech's short-term performance has improved, it has significantly lagged behind the benchmark, with the Sensex showing a positive return of 3.10% over the past month. The stock's performance over the past year has been particularly poor, generating a return of -36.94%, while the broader market has returned 2.20%. This underperformance, combined with high valuation metrics such as a price to book value of 2.4 and a PEG ratio of 3.7, suggests that investors remain cautious despite recent gains, reflecting a lack of confidence in the company's ability to sustain growth in the long term.