Why is Rushil Decor falling/rising?

As of 28-Aug, Rushil Decor Ltd's stock price is currently at Rs 25.95, reflecting an increase of Rs 2.88, or 12.48%. The stock has shown strong performance today, outperforming its sector by 13.65% and achieving a consecutive gain over the last two days with a total return of 12.88%. It reached an intraday high of Rs 26.49, although it also experienced significant volatility with a wide trading range of Rs 4.62. Despite this positive movement, the stock has a concerning history, with a year-to-date decline of 22.35% and a one-year return of -29.39%. The company's financial health is under scrutiny due to a high Debt to EBITDA ratio of 4.73 times and a significant drop in profits, which fell by 52.3% over the past year. This combination of attractive valuation metrics and troubling financial results contributes to the stock's mixed performance.
In the broader market context, Rushil Decor's recent short-term return of +11.47% over the past week stands in stark contrast to the Sensex, which has declined by 2.34% during the same period. This indicates that the stock is gaining traction relative to the broader market, despite its longer-term underperformance against benchmarks over the past three years. The lack of domestic mutual fund investment, which stands at 0%, suggests a lack of confidence in the stock's future prospects, further complicating its market position. Overall, while the stock is experiencing a short-term rise, its long-term challenges and financial instability may temper investor enthusiasm.