Why is Pudumjee Paper falling/rising?

As of 07-Jul, Pudumjee Paper Products Ltd is experiencing a price increase, currently at Rs 127.65, reflecting a rise of 6.05 or 4.98%. The stock has shown strong performance recently, gaining 9.95% over the last two days and outperforming its sector by 4.83%. Over the past week, the stock has risen by 8.18%, while its one-month return stands at 10.28%. Despite these positive short-term movements, the company has faced challenges, including a decline in profits by 2.4% over the past year and a significant drop in PAT and PBT in the latest quarter. Additionally, while the stock has a low debt-to-equity ratio and a fair valuation, it is trading at a premium compared to peers, which may affect investor sentiment.
In the broader market context, Pudumjee Paper's recent performance contrasts with the Sensex, which has seen a slight decline of 0.20% over the past week. This divergence highlights the stock's strength in a generally weak market environment. However, the long-term outlook appears less favorable, with institutional investors reducing their stakes by 0.9% in the previous quarter, indicating a potential lack of confidence among more experienced investors. Overall, while the stock is currently rising due to short-term gains and increased investor participation, underlying financial challenges and declining institutional interest may pose risks for its future performance.