Why is Mohit Paper Mill falling/rising?

As of 17-Jul, Mohit Paper Mills Ltd is currently priced at 32.50, reflecting an increase of 0.5, or 1.56%. The stock has outperformed its sector today by 1.32%, and its performance over the past month shows a positive return of 5.52%, contrasting with a slight decline of 1.12% in the Sensex over the same period. Despite a year-to-date decline of 21.12% and a one-year drop of 25.46%, the stock has shown resilience with a significant three-year return of 97.57%. The company has an attractive valuation with a return on capital employed (ROCE) of 7 and is trading at a discount compared to its peers. However, it has faced challenges, including negative results for the last three consecutive quarters and a high debt-to-EBITDA ratio, which may weigh on investor sentiment.
In the broader market context, while the stock has shown some recovery in the short term, it has significantly underperformed the market over the past year, where the BSE500 has generated a return of 0.26%. The stock's recent rise may be attributed to increased investor participation, as evidenced by a 269.78% increase in delivery volume compared to the five-day average. However, the long-term fundamentals remain weak, with low growth rates in net sales and operating profit, which could hinder sustained upward momentum. Overall, while there are positive indicators in the short term, the stock's long-term outlook appears challenging.