Why is Kinetic Engg. falling/rising?

As of 27-Jun, Kinetic Engineering Ltd's stock price is currently at Rs 252.00, reflecting an increase of Rs 2.6 or 1.04%. The stock has shown strong performance recently, with a notable 14.78% increase over the past week and a remarkable 38.69% rise over the past month. Today's trading saw the stock reach an intraday high of Rs 255.9, and it is currently trading above all its moving averages, indicating positive momentum. However, there has been a significant decline in investor participation, with delivery volume dropping by 76.7% compared to the five-day average. The promoters have increased their stake by 2.17%, signaling confidence in the company's future, despite concerns regarding its long-term fundamental strength, including a low Return on Capital Employed (ROCE) and weak sales growth.
In the broader market context, Kinetic Engineering Ltd has outperformed the Sensex, which has only increased by 2.00% over the past week, while Kinetic's stock has surged by 14.78%. This indicates a strong relative performance compared to the benchmark. The company has consistently delivered returns over the past three years, outperforming the BSE 500 in each of the last three annual periods. However, the stock's high PEG ratio of 4.2 and negative operating profits suggest that it may be trading at a risky valuation, which could temper investor enthusiasm despite the recent price increase.