Why is Veranda Learning falling/rising?

As of 17-Jul, Veranda Learning Solutions Ltd is experiencing a price increase, currently at 266.95, reflecting a rise of 9.75 or 3.79%. The stock has shown strong performance recently, with a 1-week return of +6.48% and a 1-month return of +38.24%, significantly outperforming the Sensex, which has seen a decline of -1.12% over the same week and a modest gain of +0.83% over the month. Today's trading activity indicates a positive trend, as the stock reached an intraday high of Rs 269.65, and it is trading above all key moving averages. Additionally, there has been a notable increase in investor participation, with delivery volume rising by 275.28% compared to the 5-day average. However, the company faces significant challenges, including a high debt-equity ratio of 17.36 times and negative operating profits, which raise concerns about its long-term financial health.
In the broader market context, while Veranda Learning has outperformed the Sensex in the short term, its long-term performance remains concerning, with a 1-year return of -9.20% compared to the Sensex's +1.91%. The stock's high debt levels and poor growth in operating profit, which has declined at an annual rate of -21.32% over the last five years, suggest underlying weaknesses that could impact future performance. Furthermore, the fact that 36.23% of promoter shares are pledged adds to the risk, particularly in volatile market conditions. Despite the recent price rise, these factors indicate that the stock may be trading at risky valuations, which could lead to downward pressure in the future.