Why is Aarvee Denims falling/rising?

As of 07-Jul, Aarvee Denims & Exports Ltd is experiencing a price increase, with the current price at Rs 153.95, reflecting a rise of Rs 2.95 or 1.95%. The stock has shown strong performance recently, gaining 4.73% over the last three days and outperforming its sector by 2.61%. It is currently trading close to its 52-week high, just 4.81% away from Rs 161.35. Over the past year, the stock has generated an impressive return of 412.14%, significantly higher than the market's return of 1.74%. However, the company faces challenges, including a high debt-to-equity ratio of 16.02 times and negative results reported over the last two quarters, which may raise concerns about its long-term sustainability despite the recent price increase.
In the broader market context, Aarvee Denims has outperformed the benchmark Sensex in the short term, with a 1-week return of 3.67% compared to the benchmark's slight decline of 0.20%. This indicates that investor sentiment towards Aarvee Denims remains relatively strong despite the underlying financial issues. The stock's high volatility today, with an intraday volatility of 104.34%, suggests that while there is interest and participation in trading, the risks associated with the company's financial health could lead to fluctuations in its price. Overall, while the stock is rising, the significant debt and recent negative financial results present a complex picture for potential investors.