Why is Patanjali Foods falling/rising?

As of 25-Aug, Patanjali Foods Ltd is currently priced at 1,808.95, reflecting a rise of 4.9 points or 0.27%. Today's performance indicates a trend reversal, as the stock has gained after two consecutive days of decline. It has outperformed its sector by 0.4%, although it has traded within a narrow range of Rs 16.35. In terms of returns, the stock has shown a 1.77% increase over the past week, while it has underperformed over the past month and year, with declines of 3.83% and 4.64%, respectively. Positive factors include a strong ability to service debt with a low Debt to EBITDA ratio and healthy long-term growth in net sales and operating profit. However, negative factors such as significant declines in profit before tax and profit after tax compared to previous quarters, along with a high price-to-book value ratio and increased pledged promoter shares, contribute to a complex outlook for the stock.
Broader market context shows that while Patanjali Foods has outperformed the Sensex over the past week, it has lagged behind in the longer term, with a year-to-date return of 3.07% compared to the Sensex's 4.48%. The stock's performance is further complicated by falling investor participation, as evidenced by a significant drop in delivery volume. The high proportion of pledged promoter shares may exert additional downward pressure, particularly in a falling market. Overall, while there are some positive indicators for Patanjali Foods, the combination of declining profits and high valuations relative to peers suggests caution among investors.