Why is Eternal Ltd falling/rising?

As of 22-Jul, Eternal Ltd's stock price is rising, currently at 299.85, reflecting an increase of 28.65 or 10.56%. The stock has recently hit a new 52-week and all-time high of Rs. 311.6, demonstrating strong performance today with a 16.51% return over the last two days. It opened with a gain of 7.67% and has outperformed its sector by 10.78%. The stock has shown consistent returns over the past year, generating 35.56% returns and outperforming the BSE500 in each of the last three annual periods. However, there are concerns regarding the company's financial health, as it has a high Debt to EBITDA ratio and reported negative operating profits, which could pose risks to its valuation.
In the broader market context, Eternal Ltd's short-term performance is significantly better than the benchmark, with a 1-week return of +12.51% compared to the Sensex's -0.47%. This trend continues over the past month, where Eternal Ltd has gained 18.33% while the Sensex has declined by 0.27%. The stock's strong performance is supported by high institutional holdings at 68.93%, indicating confidence from larger investors, despite the company's reported losses and negative operating profits. Overall, while the stock is experiencing a rise, the underlying financial challenges present a complex picture for potential investors.