Why is Orient Bell falling/rising?

As of 21-Jul, Orient Bell Ltd. is experiencing a price increase, currently at Rs 322.00, reflecting a change of 4.0 or 1.26% upward. The stock has shown strong performance recently, gaining 7.76% over the last three days and outperforming its sector by 0.68% today. It has also been trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating positive momentum. Despite a year-to-date decline of 1.08% and a significant drop of 13.92% over the past year, the company reported a substantial growth in profit after tax of 107.52% for the nine-month period, alongside a healthy cash position of Rs 34.41 crore. However, the stock's long-term growth prospects are hindered by a low annual growth rate in net sales and operating profit over the last five years, coupled with a high price-to-book value ratio.
In the broader market context, while Orient Bell has outperformed the Sensex in the short term with a 1-week return of 8.42% compared to the benchmark's slight decline of 0.06%, it has consistently underperformed over the longer term, particularly in the last three years. The stock's negative performance over the past year and its high valuation relative to peers may create skepticism among investors, despite recent positive results. The combination of rising investor participation and a low debt-to-equity ratio may provide some support for the stock's current upward movement, but concerns regarding its long-term growth and valuation remain significant.