Why is Wires & Fabriks falling/rising?

As of 24-Sep, Wires & Fabriks (S.A) Ltd is experiencing a price increase, currently at Rs 238.70, reflecting a rise of 2.25 (0.95%). The stock opened with a significant gain of 4.46% today, reaching an intraday high of Rs 247 before dipping to a low of Rs 224.65. The stock has shown strong performance over the past month with a return of +3.31%, and it has consistently outperformed the BSE500 in the last three annual periods. Despite a modest return of 1.14% over the past year, the company has demonstrated rising investor participation, with delivery volume increasing by 70% against the five-day average. However, it is important to note that the stock's long-term fundamental strength is considered weak, with a low return on capital employed and a high debt-to-EBITDA ratio.
In the broader market context, the stock has outperformed the Sensex over the past month, which has only increased by 0.50%. This indicates that Wires & Fabriks is gaining traction relative to the overall market, despite its recent volatility. The stock's attractive valuation, trading at a discount compared to its peers, and consistent returns over the last three years contribute positively to its current upward movement. However, concerns regarding its long-term growth potential and financial health, including a high debt-equity ratio and low ability to service debt, may temper investor enthusiasm moving forward.