Why is Eternal Ltd falling/rising?

As of 25-Aug, Eternal Ltd's stock price is currently at Rs 319.80, reflecting an increase of 0.9 or 0.28%. The stock has shown a positive trend recently, gaining 1.64% over the past week and 2.96% over the past month, while it has significantly outperformed the benchmark Sensex, which has only risen by 0.45% and 0.21% in the same periods, respectively. However, the stock has underperformed its sector by 2.12% today and is still 3.61% away from its 52-week high of Rs 331.35. Despite the recent gains, there are concerns regarding the company's financial health, as it has reported losses and a high Debt to EBITDA ratio, which indicates a low ability to service its debt. Additionally, while institutional holdings are high and have increased, the company has faced negative operating profits and a significant drop in profitability.
Broader Market Context: The broader market context shows that while Eternal Ltd has performed well compared to the Sensex over various time frames, the recent decline in investor participation, with a 49.05% drop in delivery volume, raises concerns about liquidity and investor confidence. The IT - Software sector has gained by 2.38%, which could indicate a favorable environment for tech stocks; however, Eternal Ltd's negative results and high debt levels may overshadow these sector trends. Overall, while the stock has shown resilience and growth in the long term, the combination of recent underperformance against its sector and ongoing financial challenges suggests a complex outlook for investors.