Why is COSCO (India) falling/rising?

As of 16-Sep, COSCO (India) Ltd's stock price is rising, currently at Rs 247.70, reflecting an increase of 12.2 points or 5.18%. The stock has shown strong performance today, outperforming its sector by 2.99% and achieving a consecutive gain over the last two days with a total return of 7.58%. It reached an intraday high of Rs 249, indicating positive momentum. Despite a year-to-date decline of 26.06% and a one-year drop of 36.49%, the stock's recent gains can be attributed to its attractive valuation relative to peers, as it trades at a discount compared to historical averages. However, the company faces challenges, including a high Debt to EBITDA ratio and a significant drop in profits over the past year, which may weigh on long-term investor sentiment.
In the broader market context, COSCO's short-term return of 7.18% over the past week significantly outpaces the Sensex's gain of 1.58% during the same period. This indicates that while the stock is experiencing a rebound, it has still underperformed the benchmark over longer time frames, such as the year and three years. The leather sector's overall gain of 2.02% may also be contributing to the positive sentiment around COSCO. However, the company's weak long-term fundamentals, including a -3.43% CAGR growth in operating profits and a low return on equity, suggest that while the stock is rising in the short term, there are underlying issues that could hinder sustained growth.