Why is Lemon Tree Hotel falling/rising?

As of 07-Aug, Lemon Tree Hotels Ltd is experiencing a slight decline in its stock price, currently at 144.10, reflecting a decrease of 0.35 or 0.24%. Despite this recent drop, the stock has shown resilience with a performance today that outperformed its sector by 0.39%. The stock's moving averages indicate it is higher than the 100-day and 200-day averages but lower than the 5-day, 20-day, and 50-day averages. Over the past week, the stock has declined by 3.84%, while it has gained 3.97% over the past month, indicating some volatility. The company has reported strong financial results, including a 29.27% growth in net profit and positive results for the last three consecutive quarters, which has contributed to rising investor participation and high institutional holdings at 41.31%. However, the company also faces challenges, such as high debt levels and weak long-term fundamental strength, which may be influencing investor sentiment.
In the broader market context, Lemon Tree Hotels' short-term return of -3.84% over the past week contrasts with the Sensex, which has only declined by 0.69% during the same period. This suggests that the stock is underperforming relative to the broader market. While the company has generated a return of 3.41% over the past year, it is important to note that its long-term growth has been hindered by a high debt-to-equity ratio and low profitability per unit of shareholders' funds. The stock's valuation appears expensive relative to its returns, as indicated by a PEG ratio of 1.8, which could be a factor in the recent price decline despite positive quarterly results.