Why is Eternal Ltd falling/rising?

As of 21-Jul, Eternal Ltd's stock price is rising, currently at Rs 271.20, reflecting an increase of Rs 13.85 or 5.38%. The stock has shown a positive trend today, outperforming its sector by 5.88% and reversing a four-day consecutive decline. It reached an intraday high of Rs 276.8, indicating strong intraday performance. Over the past week, the stock has gained 0.17%, and over the last month, it has appreciated by 7.02%, while it has delivered a remarkable 23.95% return over the past year. However, despite these positive indicators, the company faces challenges such as a high Debt to EBITDA ratio and reported losses, which could impact investor sentiment.
In the broader market context, Eternal Ltd's short-term performance contrasts with the Sensex, which has seen a slight decline of 0.06% over the past week. While the stock has outperformed the benchmark in recent periods, the overall market sentiment may still be cautious due to the company's financial challenges, including negative operating profits and a low ability to service debt. Despite these risks, the stock's strong institutional holdings and consistent long-term growth in net sales suggest that there is confidence in its future potential, contributing to its current upward price movement.