Why is PNB Gilts falling/rising?

As of 25-Jun, PNB Gilts Ltd is experiencing a price increase, currently at Rs 101.08, reflecting a rise of 4.68 (4.85%). The stock has shown strong performance today, outperforming its sector by 4.24% and achieving a consecutive gain over the last four days, with an overall return of 8.51% during this period. It reached an intraday high of Rs 101.27, indicating positive momentum. However, despite these gains, the stock has a year-to-date decline of 6.88% and a significant one-year drop of 25.32%. Positive factors contributing to the recent rise include a higher profit after tax (PAT) of Rs 177.62 crore and a notable growth in profit before tax (PBT) at 33.9%. The stock is also trading at a discount compared to its peers, with a favorable price-to-book value ratio of 1.2. Conversely, the stock faces challenges due to weak long-term fundamental strength, as indicated by an average return on equity (ROE) of 13.28%, and a lack of investment from domestic mutual funds, which may signal concerns about its valuation.
In the broader market context, PNB Gilts has outperformed the benchmark Sensex in the short term, with a one-week return of 2.54% compared to the Sensex's 1.61%. This short-term outperformance contrasts sharply with its long-term performance, where it has significantly underperformed the market over the past year, generating negative returns while the broader market has seen positive growth. The stock's liquidity remains adequate, but a decline in delivery volume suggests waning investor participation, which could impact future price movements. Overall, while the recent price increase is encouraging, the stock's long-term challenges and underperformance relative to the market raise questions about its sustainability.