Why is Ishan Dyes falling/rising?

As of 17-Jul, Ishan Dyes and Chemicals Ltd is experiencing a price increase, currently at Rs 63.00, reflecting a rise of 1.6 or 2.61%. The stock has shown strong performance recently, with a consecutive gain over the last three days, resulting in an 8.53% return during this period. It opened with a significant gain of 4.97% today and reached an intraday high of Rs 64.45. The stock has outperformed its sector by 2.19% today and is trading above all key moving averages, indicating positive momentum. Additionally, the company has demonstrated attractive valuation metrics, with a return on capital employed (ROCE) of 2.2 and a PEG ratio of 0.3, suggesting that it is trading at a discount compared to its peers. However, it is important to note that the company has shown weak long-term fundamental strength, with a -12.97% CAGR growth in operating profits over the last five years.
In the broader market context, Ishan Dyes has significantly outperformed the benchmark, with a 1-week return of +9.09% compared to the Sensex's -1.12%. Over the past month, the stock has surged by 38.77%, while the benchmark has only increased by 0.83%. This strong relative performance highlights investor confidence in Ishan Dyes amidst a challenging market environment. Despite the positive short-term performance, the company faces challenges with low profitability per unit of shareholders' funds, as indicated by an average return on equity of 6.54%. Overall, while the stock is currently rising due to strong short-term performance and attractive valuations, concerns about long-term profitability remain.