Why is Shahlon Silk falling/rising?

As of 23-Jun, Shahlon Silk Industries Ltd is experiencing a rise in its stock price, currently at Rs 18.00, which reflects an increase of 1.98 or 12.36%. The stock has shown a strong performance today, outperforming its sector by 11.83% and has gained consecutively over the last three days, accumulating a total return of 13.42%. Despite opening with a loss of 3.18%, the stock reached an intraday high of Rs 18, indicating significant volatility with a wide trading range of Rs 2.49. However, the stock has a negative year-to-date return of -10.89% and has underperformed over the past year with a decline of -16.90%. While the company has an attractive valuation with a return on capital employed (ROCE) of 9.3 and is trading at a discount compared to peers, it also faces challenges such as a high debt-to-EBITDA ratio and declining profits.
Broader market context shows that Shahlon Silk's short-term performance has significantly outpaced the benchmark, with a 1-week return of +9.69% compared to the Sensex's +0.12%. However, over the longer term, the stock has underperformed the market, with a 1-year return of -16.90% against the Sensex's +6.07%. This disparity highlights the stock's recent volatility and investor interest, despite its weak long-term fundamentals, including a -8.04% CAGR growth in net sales over the last five years and low profitability metrics. The rising investor participation, indicated by a substantial increase in delivery volume, suggests a potential shift in market sentiment, but the overall outlook remains cautious due to the company's fundamental weaknesses.