Why is Solara Active falling/rising?

As of 02-Jul, Solara Active Pharma Sciences Ltd is experiencing a decline in its stock price, currently at Rs 647.05, which reflects a decrease of Rs 7.3 or 1.12%. Today's performance indicates that the stock has underperformed its sector by 1.2% and has fallen after two consecutive days of gains. The stock touched an intraday low of Rs 637.55, representing a drop of 2.57%. Despite this recent downturn, the stock has shown strong performance over the past week and month, with returns of 1.75% and 35.54%, respectively. However, it has a year-to-date decline of 4.28%. Positive factors include strong quarterly results, with a 101.73% growth in PAT over the last six months and an attractive valuation compared to peers. Conversely, the stock faces challenges such as a weak long-term fundamental strength, a high Debt to EBITDA ratio, and a significant percentage of pledged promoter shares, which may exert downward pressure on the stock price.
Broader market context shows that while Solara Active has outperformed the benchmark Sensex in the short term, with a 1W return of 1.75% compared to the Sensex's 0.79%, it has struggled year-to-date with a decline of 4.28% against the Sensex's gain of 6.75%. The recent drop in investor participation, evidenced by a 40.06% decrease in delivery volume, further complicates the stock's outlook. Despite the company's positive financial indicators and market-beating performance over the long term, the combination of high debt levels, low profitability, and pledged shares creates a cautious sentiment among investors, contributing to the stock's current decline.