Why is Nirlon falling/rising?

As of 28-Aug, Nirlon Ltd's stock price is currently at 552.75, reflecting a decrease of 5.8 points or 1.04%. The stock has been underperforming, having fallen consecutively for the last two days, resulting in a total decline of 3.48% during this period. Today's trading saw the stock touch an intraday low of Rs 526.5, indicating significant selling pressure. Despite a strong performance over the past year with a return of 25.13%, the stock has recently shown weakness, particularly in the short term, as it underperformed its sector by 1.54%. The company has a high debt-to-equity ratio of 2.48, which raises concerns about its financial stability, despite its high management efficiency and strong operating profit metrics.
In the broader market context, Nirlon's recent performance contrasts with the benchmark Sensex, which has declined by 2.34% over the past week. While Nirlon has outperformed the market over the longer term, with a year-to-date return of 9.83% compared to the Sensex's 2.48%, the recent downturn suggests a shift in investor sentiment. The stock's liquidity remains adequate, but a notable drop in delivery volume indicates falling investor participation, which could further pressure the stock price. Overall, while Nirlon has demonstrated strong historical performance, current market dynamics and high debt levels are contributing to its recent decline.