Why is Chalet Hotels falling/rising?

As of 16-Sep, Chalet Hotels Ltd is experiencing a price increase, currently at 1,068.00, reflecting a rise of 15.6 or 1.48%. The stock has shown strong performance recently, gaining 5% over the last two days and outperforming its sector by 2.44%. It opened with a gain of 2.14% today and is close to its 52-week high, just 1.12% away from Rs 1,080. The stock has consistently generated positive returns, with a 20.74% increase over the past year and an impressive 219.71% over the last three years. Positive financial results, including a 71.38% growth in net sales and a significant increase in operating profit, contribute to the stock's upward movement. However, concerns about management efficiency and high debt levels, indicated by a Debt to EBITDA ratio of 101.52 times, may temper investor enthusiasm.
In the broader market context, Chalet Hotels has outperformed the Sensex, which has only increased by 1.58% over the past week, while Chalet Hotels rose by 4.08%. This trend of outperformance is consistent, as the stock has also surpassed the benchmark in the one-month and year-to-date periods. Despite the positive momentum, the stock's high valuation and the pledge of 31.93% of promoter shares could pose risks in a declining market, potentially impacting future price stability. Overall, while the stock is currently rising due to strong financial performance and investor interest, underlying risks related to debt and management efficiency warrant caution.