Why is Eternal Ltd falling/rising?

As of 25-Jul, Eternal Ltd's stock price is currently at 310.60, reflecting a decrease of 1.8, or 0.58%. The stock has recently experienced a trend reversal, falling after four consecutive days of gains. Despite this decline, it remains close to its 52-week high, just 1.22% away from Rs 314.4. Over the past week, the stock has outperformed the sector by 0.89% and has shown strong performance with a 20.69% increase in the last week and a 41.79% increase over the past year. However, the company faces challenges, including a high Debt to EBITDA ratio and reported losses, which have contributed to its negative return on capital employed.
In the broader market context, while Eternal Ltd has shown significant growth compared to the benchmark, with a year-to-date return of 11.73% versus the Sensex's 4.25%, the stock's recent performance is tempered by its financial difficulties. The stock's ability to service debt is low, and it has reported negative operating profits, which raises concerns among investors. Despite high institutional holdings and healthy long-term growth in net sales, the negative results reported in June and the overall risk associated with the company's financial health may be influencing the recent price movement.