Why is Eternal Ltd falling/rising?

As of 04-Sep, Eternal Ltd's stock price is currently at Rs 326.50, reflecting an increase of 0.5 (0.15%). The stock has been performing well, gaining 3.91% over the last four days and is currently trading close to its 52-week high, just 1.49% away from Rs 331.35. Over the past week, the stock has outperformed the sector by 0.95% and has shown impressive returns of 34.42% over the last year, significantly outperforming the BSE500 index. However, the company faces challenges, including a high Debt to EBITDA ratio of -1.00 times and negative operating profits, which could impact investor sentiment despite its healthy long-term growth and high institutional holdings.
In the broader market context, Eternal Ltd's short-term return of +3.55% over the past week stands in stark contrast to the Sensex, which has only increased by 0.80%. This indicates that the stock is gaining traction relative to the overall market. While the stock's performance has been strong, the declining delivery volume suggests a potential decrease in investor participation, which could be a concern moving forward. Overall, the combination of strong historical returns and institutional support is driving the stock's rise, despite the underlying financial risks that may temper future growth.