Why is Redtape falling/rising?

As of 11-Jul, Redtape Ltd's stock price is currently at 137.50, reflecting a decrease of 0.6, or 0.43%. The stock has outperformed its sector today by 0.69%, although it has shown a decline in investor participation, with delivery volume dropping by 47.82% compared to the 5-day average. In terms of returns, Redtape has experienced a 4.64% increase over the past week and a 3.46% increase over the past month, but it has significantly underperformed on a year-to-date basis with a decline of 37.05%. While the company boasts high management efficiency with a ROCE of 20.25% and impressive long-term growth in net sales and operating profit, it also faces challenges such as a low ROCE of 17.1%, an expensive valuation, and a high PEG ratio of 5.2, indicating potential overvaluation relative to its earnings growth.
In the broader market context, Redtape's recent performance contrasts with the Sensex, which has shown a slight decline of 1.12% over the past week and a minimal change over the past month. Despite the stock's short-term gains, its consistent underperformance against the benchmark over the last three years, coupled with a significant year-over-year decline of 24.52%, raises concerns about its long-term viability. The stock's trading at a discount compared to its peers' historical valuations further complicates its outlook, suggesting that while there may be short-term gains, the overall trend remains negative in the context of broader market performance.