Why is Nirlon falling/rising?

As of 26-Aug, Nirlon Ltd's stock price is currently at 558.55, reflecting a decrease of 11.2 points or 1.97%. Today's price summary indicates that the stock underperformed its sector by 2.4%, with an intraday high of Rs 585 and a low of Rs 555. Despite trading above its moving averages, the stock has experienced a significant drop in investor participation, with delivery volume falling by 72.73% compared to the 5-day average. Over the past month, Nirlon has shown a positive return of 7.35%, and over the past year, it has outperformed the market with a return of 27.25%. However, the company carries a high debt-to-equity ratio of 2.48, which poses risks, and its valuation appears expensive despite a high dividend yield of 4.58%.
In the broader market context, Nirlon's recent performance contrasts with the benchmark Sensex, which has seen a decline of 1.05% over the past week. While Nirlon has generated a return of 27.25% over the past year, the overall market (BSE500) has produced negative returns of -3.87%. This indicates that, despite the current decline in stock price, Nirlon has been able to maintain a strong performance relative to the broader market over a longer timeframe, suggesting that investor sentiment may still be cautiously optimistic about the company's future, albeit tempered by concerns over its high debt levels and valuation metrics.