Why is Pakka falling/rising?

As of 04-Jul, Pakka Ltd's stock price is currently at Rs 211.90, reflecting an increase of Rs 1.9 or 0.9%. The stock has shown a trend reversal by gaining after two consecutive days of decline, with an intraday high of Rs 218.05 and a low of Rs 205.1. Despite this positive movement today, the stock has underperformed its sector by 5.02%. Over the past week, Pakka has returned +0.93%, while its performance over the last month has been significantly better at +26.47%. However, the stock has struggled over the year, with a return of -16.71%, indicating a longer-term underperformance compared to the broader market. The company has a high management efficiency with a ROCE of 20.49% and a low Debt to EBITDA ratio of 1.01, which suggests a strong ability to service its debt. Nevertheless, the stock's poor long-term growth, with net sales growing at only 9.98% annually over the last five years, raises concerns among investors.
In the broader market context, Pakka's recent performance contrasts with the Sensex, which has seen a decline of 0.74% over the past week. While the paper and paper products sector has gained by 5.96%, Pakka's stock has not kept pace, reflecting a lack of investor participation, as evidenced by a significant drop in delivery volume. The stock's valuation appears attractive compared to its peers, trading at a discount despite its negative returns over the past year, where the BSE500 has generated a return of 2.13%. This combination of factors suggests that while there may be some short-term gains, the overall sentiment remains cautious due to the company's long-term growth challenges and recent underperformance relative to the market.