Why is Eternal Ltd falling/rising?

As of 05-Sep, Eternal Ltd's stock price is currently at 329.20, reflecting an increase of 2.7 (0.83%). The stock has recently hit a new 52-week high of Rs. 334.4 and has been on a consecutive gain streak for the last five days, resulting in a 4.77% return over that period. The stock is trading above all its moving averages, indicating strong momentum. However, there are concerns regarding its financial health, as the company has reported losses and has a high Debt to EBITDA ratio, which may affect investor confidence despite its impressive long-term growth in net sales and high institutional holdings.
In the broader market context, Eternal Ltd has significantly outperformed the Sensex, with a 1-week return of 4.77% compared to the benchmark's 1.13%. Over the past year, the stock has generated a return of 29.15%, while the Sensex has declined by 1.81%. This strong performance relative to the market is bolstered by the company's consistent returns over the last three years and an increase in institutional holdings. However, the falling investor participation and negative operating profits raise caution, suggesting that while the stock is currently rising, underlying financial challenges could pose risks moving forward.