Why is Ecoplast falling/rising?

As of 04-Jul, Ecoplast Ltd's stock price is currently at 705.00, reflecting an increase of 48.5, or 7.39%. The stock has shown strong performance today, outperforming its sector by 7.66% and has been on a consecutive gain streak for the last two days, accumulating a total return of 28.87% during this period. It opened with a significant gain of 13.43% and reached an intraday high of Rs 773.4, which is a 17.81% increase. Over the past year, the stock has generated an impressive return of 84.39%, significantly outperforming the BSE500 index. However, it is important to note that despite these positive movements, the company has shown weak long-term fundamental strength, with a low average Return on Equity (ROE) of 9.45% and declining profits over the past year.
In the broader market context, Ecoplast's short-term return of +29.60% over the past week stands in stark contrast to the Sensex, which has declined by 0.74% during the same period. This indicates that Ecoplast is not only gaining traction among investors but is also benefiting from rising investor participation, as evidenced by a significant increase in delivery volume. However, the stock's valuation appears expensive compared to its peers, with a Price to Book Value ratio of 3.3, and it has faced challenges such as negative results in March 2025 and a low Debtors Turnover Ratio. These factors suggest that while the stock is currently rising, there are underlying concerns that could impact its long-term performance.