Why is Steel Exchange falling/rising?

As of 02-Jul, Steel Exchange India Ltd's stock price is currently at 10.38, reflecting an increase of 0.52 or 5.27%. The stock has shown strong performance in the short term, with a 21.40% increase over the past week and a 24.76% increase over the past month, significantly outperforming the Sensex, which rose only 0.79% and 2.50% in the same periods, respectively. However, despite this recent uptick, the stock has a troubling long-term outlook, having generated a return of -28.46% over the past year. Factors contributing to the recent rise include an attractive valuation with a return on capital employed (ROCE) of 7.3 and a low PEG ratio of 0.4, indicating potential for growth despite the stock trading at a discount compared to peers. Nonetheless, the company faces challenges such as a high debt-to-EBITDA ratio and a significant percentage of promoter shares being pledged, which could exert downward pressure on the stock.
In the broader market context, while Steel Exchange has outperformed the benchmark in the short term, it has consistently underperformed over the longer term, particularly in the last three years, where it has generated -38.65% returns compared to the Sensex's 57.65% increase. The recent rise in stock price may not be sustainable given the weak long-term fundamentals, including a low ability to service debt and flat financial results. Additionally, the falling investor participation, as indicated by a 39.81% drop in delivery volume, raises concerns about the stock's liquidity and future performance. Thus, while the stock is currently rising, underlying issues may hinder its long-term growth potential.