Why is Adani Power falling/rising?

As of 10-Jun, Adani Power Ltd is experiencing a price increase, currently at 596.30, reflecting a rise of 33.0 points or 5.86%. The stock has shown strong performance recently, gaining 9.66% over the past week and 16.12% over the last month, significantly outperforming the Sensex, which has only risen by 2.05% and 3.70% in the same periods, respectively. Today's trading activity indicates a positive trend, with the stock outperforming its sector by 4.22% and achieving an intraday high of Rs 610. Additionally, the stock is trading above its moving averages across various timeframes, and there has been a notable increase in investor participation, with delivery volume rising by 44.68% compared to the five-day average.
In the broader market context, while Adani Power has shown impressive short-term returns, it has underperformed over the past year, with a decline of 22.54% compared to the market's average return of 6.22%. Despite the positive indicators such as healthy long-term growth in net sales and operating profit, the company faces challenges, including a high Debt to EBITDA ratio of 3.51 times and negative financial results from the previous year. These factors contribute to a mixed outlook, as the stock's valuation appears expensive relative to its earnings, despite trading at a discount compared to peers. Overall, the recent price increase is driven by short-term momentum and investor interest, but underlying financial concerns remain a significant factor to consider.