Why is Nirlon falling/rising?

As of 01-Sep, Nirlon Ltd's stock price is currently at 545.00, reflecting a decrease of 10.95, or 1.97%. The stock has underperformed its sector today by 3.28%, reaching an intraday low of Rs 542, which is a decline of 2.51%. Despite a positive performance over the past month with a return of 2.82%, the stock has seen a decline of 4.34% over the past week. While the company has demonstrated strong management efficiency with a high return on capital employed (ROCE) of 22.44% and a significant dividend yield of 4.68%, it also carries a high debt-to-equity ratio of 2.48, which raises concerns about its valuation and financial stability. The stock's recent performance is further complicated by a notable drop in investor participation, with delivery volume falling by 89.31% against the five-day average.
In the broader market context, the Sensex has experienced a decline of 1.56% over the past week, indicating that the stock's short-term performance is worse than the benchmark. Although Nirlon has outperformed the market with a 24.29% return over the past year compared to the Sensex's decline of 2.43%, the recent underperformance relative to both the sector and the benchmark suggests that investor sentiment may be shifting due to concerns over its high debt levels and valuation metrics. Overall, while the company has shown strong long-term performance, the current price movement reflects a combination of short-term challenges and broader market conditions.