Why is Mukand falling/rising?

As of 24-Jul, Mukand Ltd's stock price is rising, currently at 144.35, reflecting an increase of 8.7 or 6.41%. The stock has shown strong performance today, outperforming its sector by 6.08% and opening with a gain of 3.24%. It reached an intraday high of Rs 160.85, indicating significant volatility with a wide trading range of Rs 20.8. Over the past week, the stock has increased by 2.45%, and year-to-date, it has risen by 12.29%. However, despite this recent uptick, the stock has underperformed over the past year with a decline of 14.08%. Positive factors include an attractive valuation with a return on capital employed (ROCE) of 9.4 and trading at a discount compared to peers. Conversely, the company faces challenges such as a high debt-to-EBITDA ratio and a significant drop in profits, which may raise concerns among investors.
In the broader market context, Mukand's short-term performance contrasts with the Sensex, which has seen a slight decline of 0.09% over the past week. While Mukand has outperformed the benchmark in the short term, its long-term fundamentals remain weak, as indicated by a low average ROCE and poor growth in net sales. The stock's recent rise may be attributed to increased investor participation, as evidenced by a 68.41% rise in delivery volume, but the overall sentiment remains cautious due to its historical underperformance and lack of domestic mutual fund investment.