Why is Shahlon Silk falling/rising?

As of 18-Jul, Shahlon Silk Industries Ltd is experiencing a price increase, currently at Rs 20.37, reflecting a rise of 1.02 or 5.27%. The stock has shown strong performance recently, gaining 13.55% over the last three days and outperforming its sector by 6.11% today. It has also been trading above its moving averages across various time frames, indicating positive momentum. Despite a modest year-to-date return of 0.84%, the stock has delivered a significant 28.36% return over the past month, suggesting a favorable short-term outlook. Positive factors contributing to this rise include an attractive valuation with a return on capital employed (ROCE) of 9.3 and increased participation from institutional investors, who have raised their stake by 1.76% in the last quarter. However, the company faces challenges, including a decline in profits by 13.9% over the past year and a high debt-to-EBITDA ratio, which raises concerns about long-term financial health.
In the broader market context, Shahlon Silk's recent performance contrasts sharply with the Sensex, which has declined by 0.90% over the past week. This divergence highlights the stock's resilience and strength relative to the overall market. While the stock has shown impressive short-term returns, it still trails behind the benchmark over longer periods, such as the three-year return of 33.84% compared to the Sensex's 49.96%. The current liquidity levels and increased trading volume also suggest a growing interest among investors, which may further support the stock's upward movement in the near term.