Why is Ganga Forging falling/rising?

As of 22-Jul, Ganga Forging Ltd's stock price is currently at 3.87, reflecting an increase of 0.02 or 0.52%. The stock has shown a performance today that outperformed its sector by 1.76%, and it has higher prices than its 5-day and 20-day moving averages, although it remains below its 50-day, 100-day, and 200-day moving averages. Despite a significant decline of 49.74% over the past year, the stock has seen a positive short-term return of 3.48% over the last week, contrasting with the Sensex, which has decreased by 0.54%. The stock's attractive valuation, indicated by a return on capital employed (ROCE) of 3.8 and a lower trading price compared to its peers, may contribute to the recent uptick in price. However, the company has faced challenges, including a 27% decline in profits over the past year, which raises concerns about its long-term growth potential.
In the broader market context, Ganga Forging's recent performance is notable as it has outperformed the benchmark in the short term, while the Sensex has shown a slight decline. Despite this, the stock has consistently underperformed against the benchmark over the last three years, with a significant drop of 49.74% in the past year alone. The company's high debt to EBITDA ratio of 4.56 times and weak long-term fundamental strength, indicated by a low average ROCE of 4.69%, suggest that while there may be short-term gains, the long-term outlook remains precarious. Overall, the stock's recent rise appears to be driven by short-term trading activity and investor interest, despite underlying fundamental weaknesses.