Why is Redtape falling/rising?

As of 15-Jul, Redtape Ltd's stock price is currently at 138.85, reflecting an increase of 3.7, or 2.74%. The stock has shown a positive trend today, gaining after two consecutive days of decline, and it outperformed its sector by 1.54%. It reached an intraday high of Rs 140.25, indicating strong short-term momentum. However, despite this rise, the stock has experienced a significant decline year-to-date, down 36.43%, and has underperformed against the benchmark over the past year with a return of -22.72%. 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 in the first half of the year and a high PEG ratio of 5.2, suggesting that the stock may be overvalued relative to its earnings growth.
In the broader market context, Redtape's short-term performance of +1.35% over the past week contrasts sharply with the Sensex, which has declined by 1.36% in the same period. This indicates that Redtape is gaining traction despite a generally unfavorable market environment. However, the stock's long-term underperformance against the benchmark, particularly over the last three years, raises concerns about its sustainability. The significant drop in investor participation, with delivery volume falling by 61.85% against the five-day average, may also suggest waning interest, which could impact future price movements. Overall, while there are positive indicators for Redtape's recent price rise, underlying issues and broader market trends present a mixed outlook.