Why is Palco Metals Ltd falling/rising?

As of 18-Sep, Palco Metals Ltd is currently priced at 136.00, reflecting a decrease of 0.9, or 0.66%. The stock has underperformed its sector today by 0.71%, although it is trading higher than its 5-day and 20-day moving averages, but lower than its 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has seen a return of +1.27%, while its performance over the past month is +3.46%. Despite these short-term gains, the stock has experienced a significant decline of 39.20% year-to-date. Factors contributing to this decline include a recent drop in net sales by 10.2% compared to the previous quarter's average and a low profit after tax, which is the lowest recorded at Rs 0.26 crore. However, the company maintains a high return on capital employed (ROCE) of 43.31% and a strong ability to service debt, which may provide some support for the stock's valuation.
In the broader market context, the Sensex has increased by 1.80% over the past week, indicating that Palco Metals Ltd's performance is lagging behind the benchmark. While the stock has shown some resilience with a 3.46% increase over the past month, it still trails the Sensex's 2.14% gain in the same period. The company’s long-term growth prospects appear healthy, with net sales growing at an annual rate of 34.99% and operating profit at 51.38%. However, the recent decline in profits by 15.3% over the past year raises concerns among investors, contributing to the stock's current downward movement despite its attractive valuation relative to peers.