Why is Eternal Ltd falling/rising?

As of 08-Sep, Eternal Ltd's stock price is currently at 329.55, reflecting a slight increase of 0.35 (0.11%). The stock has been performing well recently, having outperformed its sector by 0.96% today and is only 1.47% away from its 52-week high of Rs 334.4. Over the past week, the stock has gained 2.60%, and in the last month, it has risen by 9.56%. Despite a recent decline in investor participation, with delivery volume falling by 56.74% against the 5-day average, the stock remains liquid enough for trading. Positive factors contributing to its rise include healthy long-term growth with net sales increasing at an annual rate of 73.31% and high institutional holdings at 68.93%, which have increased by 1.01% over the previous quarter. However, the company faces challenges such as a high Debt to EBITDA ratio and reported losses, which could pose risks to its future performance.
In the broader market context, Eternal Ltd's short-term performance has significantly outpaced the benchmark, with a 1-week return of 2.60% compared to the Sensex's 0.53%. The stock has consistently generated returns over the last three years, outperforming the BSE500 in each of the last three annual periods, with a remarkable 436.73% increase over three years. While the stock's recent gains are encouraging, the negative operating profits and declining profitability raise concerns about its sustainability in the long term. Overall, the stock's current upward movement is supported by strong institutional backing and positive growth metrics, despite underlying financial challenges.