Why is Prec. Wires (I) falling/rising?

As of 01-Jul, Precision Wires India Ltd is currently priced at 188.20, reflecting a slight increase of 0.2 (0.11%). The stock has been on an upward trend, gaining for the last three days with a total return of 5.14% during this period. It is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating strong momentum. Additionally, the company reported positive financial results, including the highest return on capital employed (ROCE) at 26.19% and net sales of Rs 1,054.38 crore. However, there are concerns regarding its high valuation, as indicated by a price-to-book value of 5.8, which is above its peers, and a low domestic mutual fund ownership of 0%, suggesting potential hesitance from institutional investors.
In the broader market context, Precision Wires has outperformed the benchmark Sensex, with a 3.55% return over the past week compared to the Sensex's 2.00%. This trend of outperformance is consistent over various time frames, including a year-to-date return of 10.06% versus the Sensex's 7.11%. Despite the positive short-term performance, the decline in investor participation, as evidenced by a 5.9% drop in delivery volume, raises questions about the sustainability of this upward movement. Overall, while the stock is currently rising, the high valuation and low institutional interest could pose risks moving forward.