Why is Kerala Ayurveda falling/rising?

As of 28-Aug, Kerala Ayurveda Ltd's stock price is currently at 488.40, reflecting an increase of 8.2, or 1.71%. The stock has shown a trend reversal by gaining after three consecutive days of decline, and it outperformed its sector by 2.55% today. The stock reached an intraday high of Rs 496.8, indicating positive momentum. Despite a recent negative performance over the past week and month, where it declined by 3.19% and 2.65% respectively, the stock has generated a substantial return of 55.29% over the past year and an impressive 570.42% over the last three years. However, the company faces challenges, including a high debt-to-equity ratio of 7.09 times and poor long-term growth, with operating profit declining at an annual rate of -210.97% over the last five years. Additionally, a significant reduction in promoter stake by 20.75% may indicate waning confidence in the company's future.
In the broader market context, Kerala Ayurveda's recent performance contrasts with the benchmark Sensex, which has declined by 2.34% over the past week and 1.00% over the past month. While the stock has outperformed the benchmark in the long term, its short-term performance has been weaker compared to the Sensex. The rising investor participation, evidenced by a 148.21% increase in delivery volume, suggests a growing interest in the stock despite its underlying financial challenges. Overall, while the stock is experiencing a short-term rise, the long-term fundamentals and high debt levels present significant risks that could affect future performance.