Why is Cyient DLM falling/rising?

As of 22-Jul, Cyient DLM Ltd's stock price is currently at 481.20, reflecting an increase of 7.2, or 1.52%. The stock has shown a trend reversal, gaining after two consecutive days of decline. It has outperformed its sector by 0.68% today, and there has been a notable rise in investor participation, with delivery volume increasing by 27.53% compared to the 5-day average. However, the stock's performance over the past year has been poor, with a return of -37.02%, and its recent quarterly results indicate a significant drop in net sales and profit after tax, raising concerns about its long-term growth potential. The company has a low debt-to-equity ratio and high institutional holdings, which may provide some stability, but the overall valuation remains expensive with a PEG ratio of 2.2.
In the broader market context, Cyient DLM's short-term performance has been slightly better than the benchmark, with a 1-month return of +6.01% compared to the Sensex's -0.27%. Despite this, the stock has significantly underperformed over the longer term, with a year-to-date return of -27.96% against the Sensex's +5.18%. This underperformance, coupled with the company's declining financial metrics and high valuation, suggests that while there may be short-term gains, the long-term outlook remains challenging.