Why is Pudumjee Paper falling/rising?

As of 18-Aug, Pudumjee Paper Products Ltd is experiencing a price increase, with the current price at Rs 127.85, reflecting a rise of Rs 4.75 or 3.86%. Today's performance indicates a trend reversal as the stock has gained after four consecutive days of decline. It outperformed its sector by 3.55% and reached an intraday high of Rs 135.05, marking a significant increase of 9.71%. However, the stock's recent performance shows mixed results; while it has generated a return of 12.54% over the past year, its profits have declined by 8.8%. The company maintains a low debt-to-equity ratio and a fair valuation, but its long-term growth prospects appear limited, as evidenced by a modest annual sales growth rate of 9.69% over the last five years.
In the broader market context, Pudumjee Paper's short-term return of 0.55% over the past week is slightly below the benchmark Sensex, which has risen by 0.83%. Despite this, the stock has shown resilience with a notable performance over the last three years, outperforming the BSE500 in each of the last three annual periods. The decline in investor participation, indicated by a drop in delivery volume, and the lack of domestic mutual fund investment may signal caution among investors regarding the stock's valuation and growth potential. Overall, while the stock is currently rising, its long-term outlook remains uncertain due to flat financial results and limited institutional interest.