Why is Sagardeep Alloys falling/rising?

As of 15-Oct, Sagardeep Alloys Ltd is experiencing a price increase, currently trading at 30.03, which reflects a rise of 1.43 or 5.0%. The stock has shown strong performance today, outperforming its sector by 3.34%. It is also trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a positive trend. Over the past week, the stock has gained 6.53%, and in the last month, it has risen by 11.30%. Positive financial results, including a higher profit after tax of Rs 1.41 crore and a strong return on capital employed (ROCE) of 10.63%, contribute to its favorable valuation, as it trades at a discount compared to peers. Additionally, the stock has generated a return of 9.12% over the past year, while profits have surged by 116%, further enhancing investor confidence.
In the broader market context, Sagardeep Alloys has outperformed the benchmark index, Sensex, which has only increased by 1.11% over the past week and 1.01% over the past month. Despite the overall market (BSE500) showing negative returns of -1.87% in the last year, Sagardeep Alloys has managed to deliver positive returns, showcasing its resilience. However, it is important to note that the company faces challenges with its long-term fundamental strength, as indicated by a low average ROCE of 3.24% and a high debt to EBITDA ratio of 4.19 times, which could impact future performance.