Why is Lemon Tree Hotel falling/rising?

As of 29-Jul, Lemon Tree Hotels Ltd is experiencing a decline in its stock price, currently at Rs 150.50, which reflects a decrease of Rs 1.2 or 0.79%. The stock has underperformed its sector by 1.28% today and has been on a downward trend for the last four days, accumulating a total loss of 4.38% during this period. The stock opened lower today with a gap down of 2.21% and reached an intraday low of Rs 148.35. Despite positive financial results, including a 29.27% growth in net profit and consistent performance over the past three years, the stock's recent movement is affected by high debt levels and weak long-term fundamental strength, which may deter investors.
In the broader market context, the stock has underperformed compared to the benchmark Sensex over the past week, with a return of -4.29% against the Sensex's -1.03%. Although Lemon Tree Hotels has shown positive returns over the past month (+8.31%) and year (+3.12%), the recent decline highlights investor concerns regarding its high debt-to-equity ratio and low return on equity, which suggest potential profitability issues. The falling investor participation, indicated by a significant drop in delivery volume, further emphasizes the cautious sentiment surrounding the stock, despite its high institutional holdings and positive quarterly results.