Why is Prestige Estates falling/rising?

As of 27-Oct, Prestige Estates Projects Ltd is experiencing a rise in its stock price, currently at 1,775.35, reflecting an increase of 22.4 points or 1.28%. The stock has shown a positive performance today, gaining 3.65% over the last three days, and it has consistently traded above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Additionally, the stock's delivery volume has increased by 20.09% compared to the 5-day average, indicating rising investor participation. However, despite these positive movements, the company faces challenges such as weak long-term fundamental strength, evidenced by a -0.17% CAGR growth in net sales over the past five years and a high Debt to EBITDA ratio of 3.23 times, which may impact investor sentiment.
In the broader market context, Prestige Estates has outperformed the Sensex in the short term, with a 1-week return of +3.43% compared to the benchmark's +0.49%. Over the past month, the stock has gained 17.83%, significantly higher than the Sensex's 5.41% increase. While the stock has shown strong short-term performance, the underlying issues such as low profitability, a declining return on equity, and a high enterprise value to capital employed ratio suggest that the stock may be trading at an expensive valuation relative to its fundamentals. This combination of strong recent performance against a backdrop of fundamental weaknesses creates a complex picture for investors.