Why is Redington falling/rising?

As of 04-Sep, Redington Ltd's stock price is currently at 242.35, reflecting an increase of 4.95, or 2.09%. Today's performance indicates a positive trend, as the stock has outperformed its sector by 1.55% and has gained after two consecutive days of decline. The stock reached an intraday high of Rs 246.5, showing a rise of 3.83%. Over the past week, Redington has seen a return of +3.13%, while its year-to-date performance stands at +21.27%. Despite a recent dip in profits, the company maintains strong long-term fundamentals, evidenced by a 17.15% CAGR growth in operating profits and a low debt-to-EBITDA ratio of 0.41 times, which supports its ability to service debt effectively. Additionally, high institutional holdings at 79.29% suggest confidence from sophisticated investors, further bolstering the stock's upward movement.
In the broader market context, Redington's performance has significantly outpaced the benchmark, with the BSE500 generating negative returns of -4.38% over the past year, while Redington has achieved a remarkable return of 21.78%. This contrast highlights the company's resilience and strong market position, as it constitutes 29.50% of its sector and has annual sales that represent 88.96% of the industry. However, it is important to note that the stock's recent performance comes amid a backdrop of declining profits, with a -6.7% decrease in profits over the past year, which could pose risks if this trend continues.