Why is Shanthi Gears falling/rising?

As of 16-Jul, Shanthi Gears Ltd. is experiencing a price increase, currently at Rs 533.55, reflecting a rise of 15.7 points or 3.03%. The stock has shown a positive performance today, outperforming its sector by 3.15% and achieving a consecutive gain over the last two days with a total return of 4.92%. Additionally, it has been trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. However, there are concerns regarding falling investor participation, as the delivery volume has decreased significantly by 50.46% compared to the 5-day average. Despite the stock's recent gains, it has underperformed over the past year with a return of -21.90%, and its valuation appears expensive relative to peers, indicated by a high Price to Book Value ratio of 10.2.
In the broader market context, the stock's short-term return of +5.08% over the past week contrasts sharply with the Sensex, which has declined by 1.08% during the same period. While Shanthi Gears has shown some resilience in the short term, its long-term performance remains a concern, particularly with a year-to-date return of +5.13% compared to the Sensex's +5.75%. The company's low debt-to-equity ratio and healthy operating profit growth suggest potential for long-term growth, but recent flat results and a decline in profit after tax raise questions about its sustainability. The limited interest from domestic mutual funds, holding only 0.69% of the company, may indicate a lack of confidence in the stock's current valuation and future prospects.