Why is Eternal Ltd falling/rising?

As of 23-Jul, Eternal Ltd's stock price is currently at 302.00, reflecting an increase of 2.15 (0.72%). The stock has been on a positive trajectory, gaining for the last three days and achieving a total return of 17.35% during this period. It is also trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating strong momentum. Additionally, the stock is close to its 52-week high, just 3.18% away from Rs 311.6. The company has demonstrated healthy long-term growth with net sales increasing at an annual rate of 73.31%, and high institutional holdings at 68.93% suggest confidence from larger investors. However, the company faces challenges, including a high Debt to EBITDA ratio of -1.00 times and reported losses, which may raise concerns about its ability to service debt.
In the broader market context, Eternal Ltd has significantly outperformed the benchmark Sensex, with a 1-week return of +15.14% compared to the Sensex's +0.11%. Over the past month, the stock has returned +18.66% while the Sensex has only gained +1.01%. Despite these impressive short-term returns, the stock's performance is tempered by negative operating profits and a decline in profits by -50.3% over the past year, which could pose risks to its valuation. Overall, while the stock is currently rising due to strong investor participation and positive growth indicators, underlying financial challenges may impact its future performance.