Why is Panchmahal Steel falling/rising?

As of 16-Jul, Panchmahal Steel Ltd is experiencing a price increase, currently at 248.50, reflecting a rise of 4.5 or 1.84%. The stock has shown strong performance recently, outperforming its sector by 2.34% today and trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has gained 5.97%, and in the last month, it has surged by 31.13%. However, despite these positive short-term movements, the company has faced challenges, including a decline in net sales by 3.71% and negative results declared in March 2025 after four consecutive quarters of losses. Additionally, the promoters have reduced their stake by 0.57%, which may indicate a lack of confidence in the company's future.
In the broader market context, while Panchmahal Steel has outperformed the Sensex in the short term, with a 1-week return of 5.97% compared to the Sensex's decline of 1.08%, it has underperformed on a year-to-date basis with a return of -2.17% against the Sensex's gain of 5.75%. The stock's long-term performance has been strong, with a 3-year return of 80.07%, but concerns about its poor long-term growth, as evidenced by a low return on capital employed and a high PEG ratio, could weigh on investor sentiment. Overall, while recent price movements are positive, underlying financial challenges and reduced promoter confidence may create headwinds for sustained growth.