Why is NLC India falling/rising?

As of 22-Jul, NLC India Ltd. is experiencing a price increase, with its current price at Rs 241.20, reflecting a change of Rs 10.65 or 4.62% upward. The stock has outperformed its sector by 5.02% today and has shown a trend reversal after two consecutive days of decline. It reached an intraday high of Rs 244.7, and it is trading above all its moving averages, indicating positive momentum. However, there has been a decline in investor participation, with delivery volume falling by 21.24% against the 5-day average. Despite a negative year-to-date return of -4.10%, the company has shown strong growth in its latest financial results, with a 215.38% increase in PAT and a 23.00% rise in net sales over the last six months, contributing to its attractive valuation compared to peers.
In the broader market context, NLC India's short-term performance has been significantly better than the benchmark, with a 1-week return of +4.96% compared to the Sensex's -0.47%. While the stock has underperformed over the past year with a return of -10.63%, it has high institutional holdings at 21.85%, which may indicate confidence among more knowledgeable investors. However, concerns regarding the company's high Debt to EBITDA ratio of 5.83 times and low long-term growth rates in net sales and operating profit could weigh on future performance. Overall, while the stock is currently rising due to positive short-term factors, underlying issues may pose challenges in the longer term.