Why is KG Petrochem falling/rising?

As of 16-Jun, KG Petrochem Ltd's stock price is rising, currently at 256.00, reflecting an increase of 19.9 or 8.43%. Today's price summary indicates that the stock opened with a significant gain of 8.43% and touched an intraday high of Rs 256. The stock has outperformed its sector by 8.76%, although it has shown erratic trading patterns, not trading on one day out of the last 20. Over the past year, KG Petrochem has generated a return of 20.22%, significantly higher than the market's average return of 3.25%. Despite this, the company faces challenges with a -14.89% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 4.47 times, which may raise concerns among investors.
In the broader market context, while KG Petrochem's short-term performance has been positive, with a 7.16% increase over the past month compared to the Sensex's decline of 0.65%, its year-to-date performance shows a decline of 14.42%, contrasting sharply with the Sensex's gain of 4.68%. This divergence highlights the stock's volatility and potential investor apprehension regarding its long-term fundamentals, despite recent positive movements. The company's attractive valuation metrics, such as a low PEG ratio of 0.1 and a return on capital employed of 3.9, suggest that it may be undervalued compared to peers, which could be contributing to the recent upward price movement.