Why is Chemplast Sanmar falling/rising?

As of 23-Jul, Chemplast Sanmar Ltd is currently priced at 464.70, reflecting an increase of 2.0 (0.43%). The stock has shown strong performance recently, with a 10.25% increase over the past week and an 11.71% rise over the past month, significantly outperforming the Sensex, which has only gained 0.11% and 1.01% respectively in the same periods. Today's trading saw the stock reach an intraday high of Rs 477.55, indicating positive momentum. However, there are concerns regarding falling investor participation, as the delivery volume has decreased by 45.66% compared to the 5-day average. While the company boasts high management efficiency and institutional holdings, it faces significant challenges, including a high Debt to EBITDA ratio of 8.50 times and negative results over the last three quarters, which may dampen investor sentiment.
In the broader market context, Chemplast Sanmar's recent short-term returns have outperformed the benchmark, suggesting a temporary positive sentiment among investors. However, the stock has consistently underperformed against the benchmark over the last three years, with a year-to-date decline of 6.86% compared to the Sensex's gain of 5.87%. This underperformance, coupled with poor long-term growth indicators such as declining net sales and operating profit, raises concerns about the stock's sustainability despite its recent gains. Overall, while there are short-term positive movements, the long-term outlook remains uncertain due to the company's financial challenges.