Why is Lotus Chocolate falling/rising?

As of 11-Jul, Lotus Chocolate Company Ltd is experiencing a decline in its stock price, currently at 1,319.95, which reflects a decrease of 36.95 or 2.72%. The stock has underperformed its sector today by 3.93% and has been on a consecutive downward trend for the last two days, accumulating a total drop of 3.58%. It opened the day with a loss of 2.86% and reached an intraday low of Rs 1303.95. Over the past week, the stock has seen a decline of 6.32%, while it has also underperformed the benchmark Sensex, which has only decreased by 1.12% during the same period. Despite a strong long-term performance with an 86.96% return over the past year, the stock's recent movement is influenced by high debt levels and a relatively expensive valuation, which may deter investors.
In the broader market context, the stock's short-term performance is notably weaker than the benchmark, as it has fallen significantly more than the Sensex in the last week and month. The company's high debt-to-equity ratio and low profitability per unit of capital employed contribute to a cautious outlook among investors, reflected in the lack of domestic mutual fund interest. While the company has reported impressive growth in net sales and profits, the market's reaction appears to be tempered by concerns over its financial health and valuation metrics, leading to a decline in stock price despite its historical performance.