Why is Parag Milk Foods falling/rising?

As of 19-Aug, Parag Milk Foods Ltd is experiencing a price increase, currently at 229.90, reflecting a rise of 3.35 or 1.48%. The stock has shown strong performance recently, gaining 8.39% over the last two days and outperforming its sector by 0.36%. In terms of returns, the stock has delivered a 4.62% increase over the past week, although it has seen a decline of 9.95% over the past month. The company's valuation appears attractive with a return on capital employed (ROCE) of 11.8, and it is trading at a discount compared to its peers. Additionally, institutional investors have increased their stake, indicating growing confidence in the company's fundamentals.
In the broader market context, the stock's recent performance has outpaced the Sensex, which has only increased by 1.76% over the past week. Parag Milk Foods has also demonstrated strong long-term performance, with a 22.12% year-to-date return compared to the Sensex's 4.49%. However, it is important to note that the company faces challenges, including a high debt to EBITDA ratio and weak long-term growth metrics, which may temper investor enthusiasm in the future. Overall, the combination of recent gains, rising institutional interest, and attractive valuation metrics has contributed to the stock's upward movement in the short term.