Why is Khaitan Chemical falling/rising?

As of 15-Jul, Khaitan Chemicals & Fertilizers Ltd is experiencing a price increase, currently at Rs 100.82, reflecting a rise of 1.97 (1.99%). The stock has shown a positive trend, gaining 6.1% over the last three days and outperforming the Sensex with a 1-week return of +3.86% compared to the benchmark's -1.36%. However, it is important to note that the stock has underperformed its sector by -0.38% today. Despite being close to its 52-week high, the stock's delivery volume has significantly decreased, indicating a potential decline in investor participation. The company's recent financial performance has been strong, with net sales growing by 216.11% and positive results over the last two quarters, which supports the stock's upward movement.
In the broader market context, Khaitan Chemicals has outperformed the benchmark significantly over various periods, including a year-to-date return of +40.75% versus the Sensex's +5.67%. This strong performance may be attributed to the company's impressive sales growth, although concerns about long-term profitability and low domestic mutual fund interest could pose risks. The stock's valuation appears expensive with a negative return on capital employed, which might deter some investors despite its recent gains. Overall, while the stock is rising due to strong short-term performance and positive financial results, the underlying risks and declining investor participation could temper future growth expectations.