Why is Velan Hotels falling/rising?

As of 24-Sep, Velan Hotels Ltd is experiencing a price increase, currently at 6.39, reflecting a rise of 0.3 or 4.93%. The stock has shown strong performance recently, gaining 45.23% over the last eight days and outperforming its sector by 5.78% today. In terms of returns, the stock has increased by 27.29% over the past week and 21.25% over the past month, contrasting sharply with the Sensex, which has seen declines of 1.18% and an increase of only 0.50% in the same periods. However, the company faces challenges, including a negative book value and high debt levels, which contribute to its weak long-term fundamental strength. Despite the recent price rise, the stock is considered risky due to its negative EBITDA and poor long-term growth metrics.
Broader Market Context: The broader market context shows that while Velan Hotels has outperformed the Sensex in the short term, it has underperformed over the year-to-date, with a decline of 16.69% compared to the Sensex's gain of 4.58%. This divergence highlights the stock's volatility and the potential risks associated with its current valuation. The falling investor participation, indicated by a decrease in delivery volume, suggests that while the stock is rising now, there may be concerns about its sustainability in the longer term, especially given the company's weak fundamentals and high debt levels.