Why is Balaji Telefilms falling/rising?

As of 23-Jul, Balaji Telefilms Ltd is experiencing a price increase, currently at Rs. 98.71, reflecting a change of 0.64 or 0.65% upward. The stock has recently hit a new 52-week high of Rs. 102.89, indicating strong performance. Over the past week, the stock has risen by 2.74%, and it has shown impressive returns of 51.03% over the last year, significantly outperforming the BSE500 index. However, there are concerns regarding falling investor participation, as the delivery volume has decreased by 40.73% compared to the 5-day average. Despite high institutional holdings at 25.21%, which typically indicate confidence in the company's fundamentals, the company is facing challenges such as operating losses and a weak ability to service its debt, which may temper investor enthusiasm.
In the broader market context, Balaji Telefilms has outperformed the Sensex, which has only increased by 0.11% over the past week, while the stock has shown a 2.74% gain. This performance is indicative of the stock's strength relative to the market, particularly in the near term. However, the company's long-term fundamentals appear weak, with a negative EBITDA and low profitability metrics, which could pose risks for future performance. While the stock has generated substantial returns over the past year, the underlying financial challenges may lead to volatility, suggesting that investors should remain cautious despite the recent price rise.