Why is UPL falling/rising?

As of 03-Jul, UPL Ltd. is experiencing a price increase, currently at Rs 683.90, reflecting a rise of 11.2 points or 1.66%. The stock has shown strong performance, gaining 7.43% over the past week and 7.77% over the past month, significantly outperforming the Sensex, which has declined by 0.62% in the same week. UPL is also close to its 52-week high, just 2.19% away, and has been on a consecutive gain streak for the last five days. Positive financial results, including a 67.07% growth in operating profit and a high cash reserve of Rs 9,537.00 crore, contribute to its strong buy sentiment. However, the stock faces risks due to a high Debt to EBITDA ratio of 2.67 times, indicating potential challenges in servicing debt.
In the broader market context, UPL's performance has been notably strong compared to the benchmark, with a one-year return of 19.53% against the BSE500's 2.20%. This market-beating performance, coupled with high institutional holdings at 55.77%, suggests that informed investors are confident in the company's fundamentals. Despite a decline in delivery volume, which fell by 48.78% against the five-day average, the stock's liquidity remains adequate for trading. Overall, UPL's recent price rise can be attributed to its solid financial performance and strong market position, despite some underlying risks.