Why is Sh. Ajit Pulp falling/rising?

As of 11-Sep, Shree Ajit Pulp and Paper Ltd is experiencing a price increase, currently at Rs 243.00, reflecting a rise of Rs 5.2 or 2.19%. The stock opened with a gain of 3.55% today and reached an intraday high of Rs 246.25. It is currently trading close to its 52-week high, being only 4.9% away from Rs 254.9. Over the past week, the stock has outperformed the sector by 2.01% and has shown strong returns over various periods, including a 15.30% increase over the past month and a 16.83% increase year-to-date. Positive financial results, including a significant net profit growth of 76.31% and consistent positive results over the last two quarters, have contributed to the stock's upward movement. However, the company faces challenges with a high Debt to EBITDA ratio of 4.04 times, indicating a low ability to service debt, which may temper investor enthusiasm.
In the broader market context, Shree Ajit Pulp and Paper Ltd's short-term performance has outpaced the benchmark Sensex, which has only increased by 1.03% over the past week. This strong relative performance suggests that investors are favoring the stock despite its risks, such as low profitability per unit of shareholder funds and poor long-term growth prospects. The stock's attractive valuation compared to peers and its recent positive financial metrics may be driving investor interest, even as delivery volume has decreased, indicating a potential decline in investor participation. Overall, the combination of strong recent performance and positive financial indicators appears to be supporting the stock's rise in a market that is generally favorable.