Why is Kinetic Engg. falling/rising?

As of 01-Jul, Kinetic Engineering Ltd's stock price is currently at Rs. 277.60, reflecting a decrease of Rs. 1.5 or 0.54%. The stock recently hit a new 52-week high of Rs. 284.65 but has underperformed its sector by 0.6% today. After two consecutive days of gains, the stock has experienced a trend reversal, touching an intraday low of Rs. 272.6. Despite this decline, Kinetic Engineering has shown strong performance over the past week, with a return of 9.49%, and impressive returns of 52.61% over the past month and 67.73% year-to-date. The company's promoters have increased their stake by 2.17%, indicating confidence in its future, while consistent returns over the last three years have outperformed the BSE500 index.
In the broader market context, Kinetic Engineering's short-term performance significantly surpasses the Sensex, which has only gained 2.00% over the past week. However, the stock's long-term fundamentals raise concerns, with a low average Return on Capital Employed (ROCE) of 0.94% and weak growth in net sales and operating profit over the last five years. Additionally, the company's recent quarterly results showed a substantial decline in profit after tax, which may contribute to investor caution. Despite rising investor participation and liquidity, the stock's negative operating profits and high PEG ratio suggest it may be trading at risky valuations, impacting its recent price movement.