Why is Malu Paper falling/rising?

As of 30-Jun, Malu Paper Mills Ltd is experiencing a price increase, with its current price at Rs 42.89, reflecting a change of Rs 2.88 or 7.2% upward. The stock has shown strong performance today, outperforming its sector by 6.08% and reaching an intraday high of Rs 43.25. Over the past week, the stock has gained 3.27%, and in the last month, it has risen by 9.67%, significantly outpacing the Sensex, which increased by 2.09% and 2.65% respectively. However, despite this positive short-term performance, the company faces challenges such as high debt levels, indicated by a Debt-Equity Ratio of 136.01 times, and poor long-term growth metrics, including a negative operating profit trend and declining profits over the past year.
In the broader market context, Malu Paper's recent gains are notable against the backdrop of the Sensex's performance. While the stock has outperformed the benchmark in the short term, it has a year-to-date decline of 4.98%, contrasting with the Sensex's 7.00% increase. This divergence highlights the stock's volatility and the risks associated with its high debt and negative EBITDA, which may deter long-term investors despite its recent price rise. The liquidity of the stock remains adequate for trading, but the falling investor participation, as indicated by a decrease in delivery volume, suggests caution among investors regarding the company's long-term fundamentals.