Why is Escorts Kubota falling/rising?

As of 07-Jul, Escorts Kubota Ltd's stock price is currently at 3,348.80, reflecting an increase of 15.8 points or 0.47%. The stock opened down by 2.19% today, reaching an intraday low of Rs 3,260.05. Despite this, the stock has shown a slight positive return of 0.61% over the past week and 1.54% over the past month, while it has significantly underperformed over the last year with a decline of 18.90%. The company's recent financial performance has raised concerns, as it reported a 5.5% drop in net sales and an 18.7% decrease in profit before tax compared to previous quarters. Additionally, the stock's high Price to Book Value ratio of 3.6 suggests it may be overvalued, despite a low debt-to-equity ratio and a PEG ratio of 2.4 indicating potential growth.
In the broader market context, the stock's performance contrasts with the benchmark Sensex, which has gained 1.53% over the past month and 4.31% over the past year. While the stock has shown some resilience in the short term, its year-to-date return of only 0.67% pales in comparison to the Sensex's 6.79% increase. The falling investor participation, evidenced by a 60.65% drop in delivery volume, further highlights the challenges the stock faces in attracting interest. Overall, while there are some positive indicators, the combination of disappointing financial results and underperformance relative to the market suggests that the stock's recent rise may not be sustainable.