Why is JK Paper falling/rising?

As of 28-Aug, JK Paper Ltd is experiencing a slight increase in its stock price, currently at 379.15, reflecting a change of 0.5 or 0.13% upward. The stock has shown strong performance in the short term, with a 7.62% increase over the past week and a 7.10% increase over the past month, significantly outperforming the Sensex, which has declined by 2.34% and 1.00% respectively during the same periods. Today's trading activity indicates a positive trend, as JK Paper is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Additionally, there has been a notable rise in investor participation, with delivery volume increasing by 35.67% compared to the 5-day average. Despite a year-to-date decline of 8.78% and a significant drop of 19.36% over the past year, the company's high management efficiency, reflected in a return on capital employed (ROCE) of 16.29%, and its attractive valuation compared to peers may contribute to the stock's recent upward movement.
In the broader market context, JK Paper's strong short-term returns contrast sharply with the benchmark Sensex, which has seen negative returns over the same periods. While the stock has faced challenges with a significant decline in profits of 63.1% over the past year, its status as the largest company in its sector, constituting 30.10% of the industry, and its substantial annual sales of Rs 6,678.58 crore, which represent 24.86% of the industry, provide a solid foundation for potential recovery. The stock's current trading at a discount compared to historical valuations may also attract investors looking for value, further supporting its recent price increase.