Why is Tirupati Forge falling/rising?

As of 15-Jul, Tirupati Forge Ltd's stock is currently priced at 44.10, reflecting an increase of 2.09, or 4.98%. The stock has shown a strong performance today, outperforming its sector by 3.1%. It is trading above its 50-day, 100-day, and 200-day moving averages, although it is below its 5-day and 20-day moving averages. Over the past month, the stock has gained 5.98%, while it has experienced a decline of 2.58% over the past week. Despite a year-to-date drop of 27.38%, the stock has generated a notable return of 34.78% over the last year, indicating a healthy long-term growth trajectory with a robust annual net sales growth rate of 39.05% and operating profit growth of 82.73%. However, recent negative results, including a 34.26% decline in PAT and a 16.94% drop in net sales, have raised concerns about its profitability.
In the broader market context, Tirupati Forge's recent performance contrasts with the Sensex, which has declined by 1.28% over the past week, suggesting that the stock is gaining traction relative to the market. While the stock has shown strong long-term performance, outperforming the BSE500 over various periods, its current valuation appears expensive with a high enterprise value to capital employed ratio. The stock's ability to service debt remains strong, supported by a low Debt to EBITDA ratio of 1.07 times, which may contribute to investor confidence despite the recent negative financial results. Overall, the stock's rise today can be attributed to its strong performance metrics and market-beating returns, even as it faces challenges in profitability.