Why is Rossell Techsys falling/rising?

As of 17-Sep, Rossell Techsys Ltd is currently priced at 735.00, reflecting an increase of 3.85 (0.53%). The stock has shown strong performance recently, with a 1-week return of +6.58% and a 1-month return of +20.53%, significantly outperforming the Sensex, which has returned +1.56% and +2.60% over the same periods, respectively. Despite this positive trend, today's performance indicates that the stock underperformed its sector by -1.67%. The stock reached an intraday high of Rs 755, and it is trading above all its moving averages, suggesting a generally bullish trend. However, there has been a notable decline in investor participation, with delivery volume falling by -30.13% against the 5-day average. The company has reported very positive results in recent quarters, with net sales growing by 34.15% and both profit before tax and profit after tax showing significant growth compared to previous averages.
In the broader market context, the defence sector, in which Rossell Techsys operates, has gained by 2.23%, indicating a favorable environment for stocks in this industry. While the stock has performed well in the short term, it faces challenges due to weak long-term fundamental strength, evidenced by a low return on capital employed (ROCE) of 7.17% and a high debt-to-EBITDA ratio of 6.06 times. These factors contribute to a perception of the stock being overvalued, particularly given its recent profit decline of -33% over the past year. Overall, while the stock is rising in the short term, concerns about its long-term growth potential and financial health may temper investor enthusiasm.