Why is Kavveri Defence falling/rising?

As of 29-Jul, Kavveri Defence & Wireless Technologies Ltd is experiencing a price increase, currently at Rs 57.67, reflecting a rise of 1.13 or 2.0%. The stock has shown a strong performance recently, gaining 8.2% over the last four days and opening with a 2% gain today. It has outperformed the benchmark Sensex over the past week and month, with returns of +6.05% and +18.86%, respectively, while the Sensex has declined by -1.03% and -3.24%. The company has reported very positive financial results, including a significant growth in net profit and net sales, which has contributed to investor confidence and the stock's upward movement. However, there are concerns regarding high debt levels and a relatively low return on capital employed, which could impact long-term profitability.
In the broader market context, Kavveri's recent performance contrasts sharply with the benchmark, as it has achieved notable gains while the Sensex has faced declines. This divergence indicates strong investor interest in Kavveri, particularly given its impressive returns over the past year of 77.06%, compared to the Sensex's near flat performance. The stock's ability to generate substantial returns in both the short and long term, despite its high debt and valuation concerns, suggests that investors are currently optimistic about its growth potential, further driving the stock price higher.