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

As of 10-Jul, Arihant Foundations & Housing Ltd is experiencing a decline in its stock price, currently at Rs 1,334.90, which reflects a decrease of Rs 27.2 or 2.0%. The stock has underperformed its sector by 2.47% today and has been on a consecutive downward trend for the last five days, resulting in a total decline of 9.59% over that period. Despite a strong long-term growth trajectory, with net sales increasing at an annual rate of 34.53% and a remarkable net profit growth of 11040%, the stock's recent performance is hindered by poor management efficiency, as indicated by a low Return on Capital Employed (ROCE) of 6.02%. Additionally, the company’s high Debt to EBITDA ratio of 4.50 times raises concerns about its ability to service debt, contributing to the stock's negative momentum.
In the broader market context, the stock's short-term performance contrasts sharply with the benchmark, as it has declined by 9.59% over the past week while the Sensex has remained relatively flat with a change of only -0.06%. Although the stock has shown impressive long-term returns, generating 463.96% over the past year and outperforming the BSE500 consistently, the recent drop in investor participation and the lack of domestic mutual fund investment may indicate a lack of confidence among investors at the current price level. This combination of factors suggests that while the company has strong fundamentals, current market sentiment and operational challenges are negatively impacting its stock price.