Why is Megastar Foods falling/rising?

As of 04-Aug, Megastar Foods Ltd is experiencing a price increase, currently at Rs 271.50, reflecting a rise of 5.9 or 2.22%. Today's price summary indicates that the stock has outperformed its sector by this percentage, marking a trend reversal after two consecutive days of decline. Despite opening with a loss of 3.99%, the stock reached an intraday high of Rs 276.9, showcasing volatility within the trading day. Over the past week, the stock has shown a slight gain of 0.37%, while its year-to-date performance remains strong at 22.66%, significantly outperforming the Sensex's 3.69% increase. However, it is important to note that the stock has generated a negative return of 9.14% over the past year, coinciding with a substantial profit decline of 40%.
In the broader market context, Megastar Foods' recent performance contrasts with the Sensex, which has seen a slight decline of 2.89% over the past month. This indicates that while the stock has faced challenges in the longer term, its recent uptick may be attributed to rising investor participation and a favorable valuation compared to peers. The stock is currently trading at a discount relative to its historical valuations, which could attract investors looking for value opportunities. Despite the overall negative trend in profits, the stock's liquidity and movement above key moving averages suggest a potential recovery, albeit with caution due to its recent performance history.