Why is Mahindra Holiday falling/rising?

As of 16-Jul, Mahindra Holidays & Resorts India Ltd is experiencing a price increase, currently at 357.10, reflecting a rise of 3.6 or 1.02%. The stock has shown positive momentum, gaining 1.72% over the last two days and outperforming the Sensex, which has declined by 1.08% over the past week. Additionally, the stock is trading above its moving averages across various time frames, indicating a bullish trend. However, there is a notable decline in investor participation, with delivery volume dropping by 55.99% against the 5-day average. Despite a year-over-year return of -20.05%, the company has reported significant growth in profit before tax and profit after tax, suggesting a potential turnaround despite its high debt levels and weak long-term growth metrics.
In the broader market context, while Mahindra Holidays has underperformed the market over the past year, it has shown resilience in the short term, with a 6.11% increase over the past month compared to a 1.02% rise in the Sensex. This indicates that the stock may be gaining traction among investors despite its historical challenges. The company's current valuation appears attractive compared to its peers, and its recent financial results have provided a positive outlook, which may be contributing to the recent price increase. However, the high debt-to-equity ratio and low return on capital employed remain concerns that could impact long-term investor sentiment.