Why is Ishan Dyes falling/rising?

As of 02-Jul, Ishan Dyes and Chemicals Ltd is experiencing a rise in its stock price, currently at Rs 62.08, reflecting an increase of 1.33 or 2.19%. The stock has shown strong performance recently, with a notable 9.45% increase over the last three days and a remarkable 54.24% rise over the past month. Despite opening down by 7% today, it reached an intraday high of Rs 63, indicating volatility. The stock is trading above its moving averages across various time frames, and there has been a significant increase in investor participation, with delivery volume rising by 107.16% compared to the five-day average. The company’s attractive valuation metrics, including a low PEG ratio of 0.3 and a substantial profit increase of 86% over the past year, further support the stock's upward movement.
In the broader market context, Ishan Dyes has significantly outperformed the Sensex, which only increased by 0.79% over the past week, while Ishan Dyes surged by 18.02%. This strong relative performance highlights investor confidence in the stock despite its long-term challenges, such as a negative CAGR growth in operating profits over the last five years and low profitability as indicated by its average Return on Equity of 6.54%. While the stock's recent gains are encouraging, the underlying weaknesses in long-term fundamentals may temper future expectations.