Why is Escorts Kubota falling/rising?

As of 18-Aug, Escorts Kubota Ltd's stock price is rising, currently at 3,615.75, reflecting an increase of 221.2 or 6.52%. The stock has shown strong performance today, outperforming its sector by 0.66% and achieving a consecutive gain over the last three days with a total return of 7.67%. It reached an intraday high of Rs 3725.8, indicating robust trading activity. Additionally, the stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, which suggests a positive trend. The company has a low debt-to-equity ratio and reported strong operating cash flow and profit margins, contributing to investor confidence. However, it is noted that the stock has an expensive valuation relative to its return on equity, despite a significant increase in profits over the past year.
In the broader market context, Escorts Kubota's short-term return of 7.65% over the past week significantly outpaces the Sensex, which only gained 0.83%. Over the past month, the stock has also outperformed the benchmark, with a return of 6.16% compared to the Sensex's decline of 0.59%. This strong performance in a challenging market environment indicates investor optimism towards the company's fundamentals and growth potential, particularly in the auto-tractor sector, which has gained 5.87%. The rising investor participation, evidenced by a substantial increase in delivery volume, further supports the positive sentiment surrounding the stock.