Why is Chalet Hotels falling/rising?

As of 10-Jul, Chalet Hotels Ltd is experiencing a slight increase in its stock price, currently at 869.20, reflecting a change of 0.85 or 0.1% upward. The stock has shown a performance of 1.3% gain over the last two days, outperforming its sector by 0.31%. However, it has faced challenges with a 1-week decline of 1.79% and a year-to-date drop of 11.47%. Despite these short-term struggles, the company reported significant positive results in its latest quarterly performance, with a PAT growth of 389.7% compared to the previous four-quarter average and a high ROCE of 10.50%. Nevertheless, concerns about long-term fundamental strength persist, particularly due to a high Debt to EBITDA ratio and a significant portion of promoter shares being pledged, which could exert downward pressure on the stock.
In the broader market context, while Chalet Hotels has outperformed the BSE500 in the last three annual periods, its recent performance contrasts with the benchmark's slight decline of 0.06% over the past week. The stock's liquidity remains adequate, but a notable decrease in delivery volume suggests waning investor participation. This combination of strong short-term gains alongside long-term concerns and a declining trend relative to the benchmark indicates a complex situation for investors considering the stock's future trajectory.