Why is Mahindra Holiday falling/rising?

As of 23-Jul, Mahindra Holidays & Resorts India Ltd is experiencing a price increase, currently at Rs 366.80, reflecting a rise of 5.2 points or 1.44%. The stock has shown positive momentum, gaining 2.82% over the last two days and outperforming its sector by 1.35% today. It reached an intraday high of Rs 377.45, and is trading above its 5, 20, 50, 100, and 200-day moving averages. Despite a year-on-year decline of 17.91%, the stock has generated a return of 11.49% over the past month, indicating a recovery trend. However, the company faces challenges, including high debt levels and weak long-term fundamental strength, which may temper investor enthusiasm.
In the broader market context, Mahindra Holidays has outperformed the Sensex in the short term, with a 1-week return of 2.72% compared to the benchmark's 0.11%. While the stock has shown recent gains, it has underperformed the market over the past year, highlighting a significant disparity in performance. The company's high debt and low profitability metrics, such as a return on capital employed of 7.3%, suggest caution among investors. Despite these challenges, the recent uptick in investor participation and the stock trading at a discount compared to peers may contribute to its current positive price movement.