Why is Lotus Chocolate falling/rising?

As of 20-Aug, Lotus Chocolate Company Ltd is experiencing a price increase, currently at 1,215.70, reflecting a rise of 51.7 points or 4.44%. The stock has shown a positive trend recently, gaining 5.62% over the last three days and outperforming its sector by 2.19%. It reached an intraday high of Rs 1228.9 today. However, despite this short-term gain, the stock has underperformed over the past month, with a decline of 4.96%, and a significant drop of 43.36% over the past year. The company has demonstrated healthy long-term growth with net sales increasing at an annual rate of 59.95% and operating profit at 88.61%. Nevertheless, it faces challenges due to high debt levels, as indicated by a debt-to-equity ratio of 5.65 times, and a recent fall in earnings per share (EPS) of -30.63%, which may weigh on investor sentiment.
In the broader market context, the stock's recent performance contrasts with the benchmark Sensex, which has gained 1.64% over the past week. While Lotus Chocolate has outperformed the sector recently, its year-to-date performance remains negative at -13.96%, compared to the Sensex's positive return of 4.76%. The stock's significant decline over the past year, coupled with a lack of domestic mutual fund investment, suggests that investor confidence may still be shaky despite recent gains. The company’s high valuation metrics, such as a price-to-book value of 42.4 and a PEG ratio of 4.7, further complicate its attractiveness to potential investors, indicating that while there are short-term gains, the long-term outlook remains uncertain.