Why is Alembic Pharma falling/rising?

As of 16-Jul, Alembic Pharmaceuticals Ltd. is experiencing a decline in its stock price, currently at 1,023.80, reflecting a decrease of 7.9 points or 0.77%. Today's performance indicates that the stock has underperformed its sector by 0.5%, opening with a loss of 2.23% and reaching an intraday low of Rs 1008.7. Despite this downturn, the stock has shown resilience in the longer term, with a 5.59% increase over the past month and a notable 45.42% rise over the last three years. However, the company has faced challenges, including a negative return of -5.38% over the past year, alongside a decline in profits by 7%. The stock's ability to service debt remains strong, evidenced by a low Debt to EBITDA ratio of 0.67 times, and it is trading at a discount compared to its peers, which may attract some investors.
In the broader market context, the Sensex has shown a slight decline of 1.08% over the past week, while Alembic Pharmaceuticals has outperformed this benchmark with a 3.80% increase during the same period. This suggests that the stock's recent performance is somewhat isolated from the overall market trend. However, the stock's long-term growth prospects appear poor, with an annual operating profit decline of 7.30% over the last five years and negative results reported in March 2025. High institutional holdings at 20.37% indicate a level of confidence from more sophisticated investors, but the overall negative sentiment surrounding the company's growth and profitability may be contributing to the current price decline.