Why is Manali Petrochem falling/rising?

As of 03-Jul, Manali Petrochemicals Ltd is experiencing a price increase, with its current price at Rs 74.00, reflecting a rise of Rs 5.17 or 7.51%. The stock has outperformed its sector by 5.6% today and reached an intraday high of Rs 74.81, marking an increase of 8.69%. Over the past week, the stock has gained 6.26%, and in the last month, it has surged by 27.43%, while its year-to-date return stands at 17.07%. However, despite this positive short-term performance, the company faces challenges such as a low inventory turnover ratio and a high debt-equity ratio, which may contribute to concerns about its long-term growth potential. Additionally, the stock's valuation appears expensive compared to peers, with a price-to-book value of 1.2, and domestic mutual funds hold a minimal stake, indicating a lack of confidence in the stock's price.
In the broader market context, while Manali Petrochemicals has shown strong short-term returns, the benchmark Sensex has declined by 0.62% over the past week and increased by only 3.10% in the last month. This indicates that the stock is currently outperforming the market, particularly in the short term. However, it is important to note that the stock has underperformed over the past year, with a return of -21.77% compared to the market's 4.07% gain. This underperformance, coupled with the company's declining operating profit and low mutual fund interest, suggests that while the stock is rising now, there are significant underlying issues that could affect its future performance.