Why is Deco-Mica falling/rising?

As of 15-Jul, Deco-Mica Ltd's stock price is currently at 83.99, reflecting an increase of 3.98 or 4.97%. The stock has shown a strong performance recently, gaining 13.33% over the past week and outperforming its sector by 5.18% today. It has been on a consecutive gain streak for four days, with an opening gap up of 7.49% today and reaching an intraday high of Rs 86. Despite a negative return of -17.66% over the past year, the stock is trading at a discount compared to its peers, with a very attractive valuation indicated by a ROCE of 11.4. However, the company faces challenges such as a high Debt to EBITDA ratio of 3.61 times and a low average Return on Equity of 8.04%, which may limit its long-term growth potential.
In the broader market context, Deco-Mica's short-term return of +13.33% over the past week contrasts sharply with the Sensex, which has declined by 1.36% during the same period. While the stock has shown resilience in the short term, it has underperformed the market over the past year, where the BSE500 generated a return of 0.37%. This divergence highlights the stock's current momentum despite its longer-term struggles, suggesting that investor sentiment may be shifting positively in the short term, even as fundamental concerns linger.