Why is Arih.Found.Hsg. falling/rising?

As of 24-Jun, Arihant Foundations & Housing Ltd is experiencing a decline in its stock price, currently at Rs 1,392.60, which reflects a decrease of Rs 28.4 or 2.0%. The stock has underperformed its sector by 2.34% today and has been on a consecutive downward trend for the last four days, resulting in a total decline of 7.05% during this period. Despite a strong long-term growth trajectory, including a remarkable 645.10% return over the past year, the stock is facing challenges such as poor management efficiency indicated by a low Return on Capital Employed (ROCE) of 6.02% and a high Debt to EBITDA ratio of 4.50 times, which raises concerns about its ability to service debt.
In the broader market context, the stock's recent performance contrasts with the benchmark, as it has declined by 5.20% over the past week while the Sensex has gained 0.58%. Although Arihant Foundations has shown impressive returns over longer periods, its current struggles may reflect investor caution, particularly given the falling investor participation and the lack of domestic mutual fund investment, which could signal a lack of confidence in the stock's valuation at present.