Why is Kerala Ayurveda falling/rising?

As of 25-Jun, Kerala Ayurveda Ltd's stock price is currently at Rs. 540.10, reflecting an increase of Rs. 5.0 or 0.93%. The stock has shown a strong performance recently, gaining 26.65% over the last three days and hitting a new 52-week high of Rs. 548.8 today. Over the past week, the stock has outperformed the Sensex with a return of 13.56% compared to the benchmark's 1.61%. However, despite these positive movements, the company faces challenges such as a high debt-to-equity ratio of 7.09 times and negative profitability indicators, including a significant drop in operating profit and a negative EBITDA. These factors contribute to a mixed outlook for the stock, despite its recent gains.
In the broader market context, Kerala Ayurveda's short-term performance has significantly outpaced the Sensex, which indicates strong investor interest relative to the overall market. The stock's year-to-date return of 22.19% also surpasses the Sensex's 5.91%, highlighting its robust performance. However, the declining investor participation, as evidenced by a 22.9% drop in delivery volume, raises concerns about sustainability. Additionally, the low stake held by domestic mutual funds suggests a lack of confidence in the company's long-term prospects, which may temper enthusiasm despite recent price increases.