Why is Aro Granite Inds falling/rising?

As of 25-Jul, Aro Granite Industries Ltd is experiencing a decline in its stock price, currently at Rs 36.52, which reflects a decrease of Rs 1.65 or 4.32%. The stock has underperformed its sector by 3.06% today and has been on a consecutive downward trend for the last two days, resulting in a total drop of 7.05% during this period. Despite opening with a significant gain of 8.99% and reaching an intraday high of Rs 44.99, the stock's performance has been volatile, trading within a wide range of Rs 8.47. Additionally, the stock has been trading below its moving averages across various timeframes, indicating a bearish trend. The company faces significant challenges, including a weak long-term fundamental strength with a -185.45% CAGR growth in operating profits over the last five years, a high debt-to-EBITDA ratio of 10.75 times, and low profitability as evidenced by an average return on equity of only 1.78%.
In the broader market context, Aro Granite's performance has been notably poor compared to the benchmark, with a year-to-date return of -22.55% against a positive 4.25% for the Sensex. Over the past year, the stock has generated a return of -39.14%, significantly underperforming the BSE500 index. This underperformance is compounded by the company's flat results in March 2025, which included the lowest net sales and a concerning reliance on non-operating income. The overall market sentiment appears to be cautious, as the stock's high volatility and negative operating profits suggest a risky investment environment, further contributing to its declining price.