Why is Velan Hotels falling/rising?

As of 08-Jul, Velan Hotels Ltd is experiencing a significant rise in its stock price, currently at Rs 6.74, reflecting an increase of 1.12 or 19.93%. Today's price summary indicates that the stock outperformed its sector by 19.65%, despite opening with a loss of 3.74%. The stock reached an intraday high of Rs 6.74 and has shown high volatility with an intraday fluctuation of 11.04%. In terms of returns, the stock has increased by 21.22% over the past week and 12.71% over the past month, although it has a year-to-date decline of 12.13%. The company is facing challenges, including a high debt-to-equity ratio of 9.15, which indicates weak long-term fundamental strength, and negative financial results from March 2025, including a significant drop in profit before tax and negative EBITDA.
In the broader market context, Velan Hotels' short-term performance is notably stronger than the Sensex, which has only increased by 0.02% over the past week. This contrast highlights the stock's recent upward momentum despite its long-term struggles, as evidenced by a 2.59% gain over the past year compared to the Sensex's 4.69% increase. The stock's high volatility and rising investor participation, with a delivery volume increase of 21.81%, suggest a growing interest among traders, which may be contributing to its current price rise. However, the company's high debt and poor long-term growth prospects remain significant concerns that could impact future performance.