Why is Malu Paper falling/rising?

As of 09-Jun, Malu Paper Mills Ltd's stock price is currently at Rs 43.25, reflecting an increase of Rs 3.85 or 9.77%. The stock has shown strong performance recently, gaining 10.61% over the last two days and outperforming its sector by 7.67% today. It opened with a gain of 4.04% and reached an intraday high of Rs 44, indicating positive momentum. However, despite a 23.36% return over the past year, the company faces challenges such as a high debt-equity ratio of 136.01 times and poor long-term growth, with net sales growing at only 4.18% annually. These factors contribute to a mildly bearish technical outlook for the stock.
In the broader market context, Malu Paper's short-term performance has significantly outpaced the benchmark Sensex, which only increased by 1.32% over the past week. While the stock has shown impressive returns in the short term, the overall market sentiment remains cautious due to the company's high debt levels and negative EBITDA, which may deter long-term investors. The paper and paper products sector has gained 2.46%, but the declining delivery volume indicates falling investor participation, suggesting that while the stock is rising now, its long-term prospects may be uncertain.