Why is Sharda Motor falling/rising?

As of 22-Jul, Sharda Motor Industries Ltd is experiencing a significant rise in its stock price, currently at 1,190.75, reflecting an increase of 107.35 or 9.91%. The stock has shown strong performance today, outperforming its sector by 10.97% and achieving a consecutive gain over the last two days with a total return of 11.91%. It reached an intraday high of Rs 1224, indicating robust trading activity. Over the past week, the stock has risen by 12.23%, while its one-month return stands at 28.18%. Despite a slight decline in delivery volume, the company maintains strong long-term fundamentals, evidenced by a healthy average Return on Equity (ROE) of 25.69% and significant growth in net sales and operating profit.
In the broader market context, Sharda Motor's recent performance contrasts sharply with the Sensex, which has seen a slight decline of 0.47% over the past week. The stock's year-to-date return of 28.38% also significantly outpaces the Sensex's 5.18% increase. This strong performance can be attributed to the company's solid financial health, including a low debt-to-equity ratio and a fair valuation compared to its peers. While the stock generated a negative return of -1.28% over the past year, its profits have increased by 5.1%, suggesting that the recent price movement may reflect investor confidence in the company's growth potential despite previous fluctuations.