Why is Sonal Adhesives falling/rising?

As of 01-October, Sonal Adhesives Ltd is experiencing a price increase, with the current price at Rs 49.00, reflecting a rise of 1.05 or 2.19%. The stock has shown positive momentum, gaining 3.7% over the last two days and outperforming its sector by 1.9% today. It opened with a significant gain of 3.44% and reached an intraday high of Rs 49.6. Despite this recent uptick, the stock has faced challenges, including a substantial decline of 34.23% over the past year and a drop in delivery volume by 95.23% against the five-day average. While the company has demonstrated healthy long-term growth with a net sales increase of 35.49% annually, its profits have decreased by 11.7%, contributing to a mixed outlook.
In the broader market context, Sonal Adhesives has outperformed the Sensex by 6.13% over the past week, while the benchmark has declined by 0.90%. However, the stock has consistently underperformed against the benchmark over the last three years, which raises concerns about its long-term viability. Despite the attractive valuation indicated by a return on capital employed (ROCE) of 12.4 and trading at a discount to peers, the persistent underperformance and flat results in recent quarters suggest that investor confidence may be wavering. Overall, while there are signs of short-term recovery, the long-term outlook remains uncertain due to historical underperformance and declining profits.