Why is Palco Metals Ltd falling/rising?

As of 29-Aug, Palco Metals Ltd is experiencing a price increase, currently at 128.00, reflecting a rise of 5.5 or 4.49%. Today's price summary indicates that the stock has outperformed its sector by 4.05% and has shown a trend reversal after two consecutive days of decline. It opened with a gain of 6% and reached an intraday high of Rs 132, although it is trading lower than its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Despite a significant decline in returns over the past month and year, the company demonstrates high management efficiency with a return on capital employed (ROCE) of 43.31% and a strong ability to service debt, indicated by a low debt to EBITDA ratio of 1.24 times. However, the stock has seen a decrease in profits and net sales, which may contribute to its volatility.
In the broader market context, Palco Metals Ltd's short-term performance has been relatively better than the benchmark, with a 1-week return of -3.25% compared to the Sensex's -1.84%. This suggests that while the stock has faced challenges, it is currently rebounding more effectively than the overall market. The company's long-term growth potential is supported by a healthy annual growth rate in net sales and operating profit, although recent financial results indicate a decline in profitability. The stock's attractive valuation relative to peers, combined with rising investor participation, may be contributing to the current upward price movement despite the backdrop of declining sales and profits.