Why is Ather Energy falling/rising?

As of 03-Sep, Ather Energy Ltd's stock price is currently at Rs 499.65, reflecting an increase of 2.35 (0.47%). The stock has shown strong performance recently, gaining 15.93% over the last four days and is only 2.62% away from its 52-week high of Rs 512.75. Despite this upward trend, the stock has underperformed its sector by 0.28% today. The company benefits from high institutional holdings at 48.08%, which have increased by 17.42% over the previous quarter, indicating strong confidence from institutional investors. However, the company faces challenges such as operating losses and a high Debt to EBITDA ratio of -1.00 times, which suggests a weak long-term fundamental strength and a risky investment profile.
In the broader market context, Ather Energy's short-term performance has significantly outpaced the benchmark Sensex, which has seen a slight decline of 0.27% over the past week. While Ather Energy has achieved a remarkable 15.70% return in the same period, the overall market has not performed as well, indicating that investor sentiment towards Ather Energy is relatively positive despite the company's underlying financial challenges. This divergence suggests that investors may be optimistic about the company's potential for growth, even as it grapples with operational difficulties.