Why is Eternal Ltd falling/rising?

As of 22-Sep, Eternal Ltd's stock price is rising, currently at 341.75, reflecting an increase of 5.2 or 1.55%. The stock has recently hit a new 52-week high of Rs. 343.95 and has outperformed its sector by 4.16%. In the past week, the stock has gained 5.71%, and over the last month, it has risen by 7.17%. The company has shown healthy long-term growth with net sales increasing at an annual rate of 73.31%, and high institutional holdings at 68.93% suggest strong investor confidence. However, the company also faces challenges, including a high Debt to EBITDA ratio of -1.00 times and reported losses, which may pose risks to its financial stability.
In the broader market context, Eternal Ltd's short-term performance significantly outpaces the benchmark, with a 1-week return of 5.71% compared to the Sensex's 0.46%. This indicates that while the stock is performing well relative to the market, the IT - Software sector has seen a decline of -2.6%, which contrasts with Eternal Ltd's positive movement. Despite the stock's recent gains, the company has reported negative operating profits and a decrease in profits over the past year, which could affect future performance. Overall, the stock's rise is driven by strong investor participation and positive growth metrics, but underlying financial challenges remain a concern.