Why is Kama Holdings falling/rising?

As of 21-Jul, Kama Holdings Ltd is experiencing a price increase, currently at 3,090.00, reflecting a rise of 15.0 points or 0.49%. The stock has shown strong performance over the past month with an increase of 8.46%, significantly outperforming the benchmark Sensex, which has declined by 0.25% during the same period. Despite today's performance indicating a slight underperformance against its sector by 0.37%, the stock has touched an intraday high of Rs 3,150, indicating positive momentum. Additionally, Kama Holdings is trading above its moving averages across various time frames, suggesting a bullish trend. However, there is a noted decline in investor participation, with delivery volume falling by 26.1% compared to the 5-day average, which could indicate some caution among investors. The stock's long-term fundamentals remain strong, with a solid average Return on Equity (ROE) of 17.33%, although profits have decreased by 27.7% over the past year.
In the broader market context, Kama Holdings has outperformed the market significantly, generating a return of 14.19% over the past year compared to the BSE500's return of only 1.63%. This performance highlights the stock's resilience and attractiveness to investors despite the recent dip in profit margins. The stock's fair valuation, with a Price to Book Value of 1.4, further supports its appeal in comparison to peers. Overall, while the stock is currently rising, the decline in delivery volume and falling profits may warrant caution among investors looking for sustained growth.