Why is Kwality Pharma falling/rising?

As of 01-Jul, Kwality Pharmaceuticals Ltd is experiencing a significant rise in its stock price, currently at Rs 1,157.95, reflecting an increase of Rs 97.55 or 9.2%. The stock has recently outperformed its sector by 9.41% and has shown strong performance over various periods, with a 1-week return of 11.99% and a remarkable 130.30% return over the past year. The stock reached a new 52-week high of Rs 1,185 today and has been gaining for the last two days, with a total increase of 14.13% during this period. Positive factors contributing to this upward movement include a strong ability to service debt, as indicated by a low Debt to EBITDA ratio of 1.03 times, and impressive growth in net profit of 241.51% reported in March 2025. However, there are concerns regarding long-term growth, as net sales have declined at an annual rate of -6.73% over the last five years.
In the broader market context, Kwality Pharmaceuticals has significantly outperformed the Sensex, which has only increased by 2.00% over the past week, while Kwality's stock has surged by nearly 12%. This stark contrast highlights the stock's strong market performance relative to the benchmark. The company's ability to generate substantial returns in both the short and long term, alongside consistent positive results over the last five quarters, positions it favorably in the market. Nevertheless, the lack of domestic mutual fund investment may indicate some caution among institutional investors regarding the stock's valuation and long-term growth potential.