Why is J.G.Chemicals falling/rising?

As of 17-Jul, J.G.Chemicals Ltd is experiencing a price increase, currently at Rs 504.50, reflecting a change of 3.1 (0.62%) upward. The stock has shown a strong performance over the past month, with a return of +25.19%, significantly outperforming the benchmark Sensex, which only gained +0.83%. Despite a recent decline of -2.60% over the past week, today's trading saw the stock reach an intraday high of Rs 525, indicating positive investor sentiment. However, there has been a notable decrease in investor participation, with delivery volume dropping by -72.67% against the 5-day average, which may raise concerns about sustained interest. The company's strong financial performance, including a 38.65% growth in PAT and a return on equity of 13.8%, supports its attractive valuation, contributing to the stock's upward movement.
In the broader market context, J.G.Chemicals has outperformed the market significantly over the past year, generating a return of +101.92% compared to the BSE500's mere +0.26%. This strong performance may be bolstered by the company's low debt-to-equity ratio and consistent positive results over the last three quarters. However, the long-term growth outlook appears less favorable, with net sales growing at only 4.00% annually over the last five years, which could temper investor enthusiasm. Additionally, the absence of domestic mutual fund investment may indicate a lack of confidence among institutional investors, potentially impacting the stock's future performance.