Why is Garg Furnace falling/rising?

As of 17-Jul, Garg Furnace Ltd's stock price is currently at Rs 205.00, reflecting an increase of Rs 3.0 or 1.49%. The stock has shown strong performance recently, gaining 9.01% over the last three days and outperforming its sector by 1.02% today. It reached an intraday high of Rs 213, indicating positive momentum. Despite this recent uptick, the stock has underperformed over the past year, with a return of -28.03%, even as its profits increased by 37.5%. The company maintains a low Debt to EBITDA ratio of 1.11, suggesting a strong ability to service its debt, which may contribute to investor confidence.
In the broader market context, Garg Furnace's short-term return of +17.85% over the past week contrasts sharply with the Sensex, which has declined by 1.12% in the same period. However, the stock's long-term performance remains concerning, as it has significantly lagged behind the market over the past year. While the stock is currently trading at a premium compared to its peers, the overall negative return over the last year raises questions about its valuation. The falling investor participation, as indicated by a 28.16% decrease in delivery volume, further complicates the outlook, suggesting that despite recent gains, there may be underlying issues affecting investor sentiment.