Why is Shree Bhavya falling/rising?

As of 24-Sep, Shree Bhavya Fabrics Ltd is experiencing a price increase, currently at 27.99, reflecting a rise of 0.95 or 3.51%. The stock has shown positive momentum, gaining for the last two days with a total return of 3.71% during this period. Additionally, it has outperformed its sector by 3.94% today. The stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating strong short-term performance. Despite a year-to-date decline of 2.61%, the stock has generated a notable return of 17.70% over the past year, supported by a significant profit increase of 43.7%. However, it is important to note that the company has a relatively weak long-term fundamental strength, as indicated by a Return on Capital Employed (ROCE) of 9.6 and a high Debt to EBITDA ratio of 5.94 times.
In the broader market context, Shree Bhavya's short-term performance contrasts with the Sensex, which has declined by 1.18% over the past week. While the stock has faced challenges in terms of long-term growth, with net sales growing at an annual rate of only 2.46% over the last five years, its recent gains suggest a positive sentiment among investors, possibly driven by attractive valuations compared to peers. The stock's liquidity is also favorable, with a significant increase in delivery volume, indicating rising investor participation. Overall, while the stock has shown resilience and outperformance in the near term, underlying concerns regarding long-term growth and high promoter pledged shares could pose risks moving forward.