Why is Art Nirman Ltd falling/rising?

As of 27-Oct, Art Nirman Ltd is experiencing a decline in its stock price, currently at 61.05, which reflects a decrease of 3.22 or 5.01%. Despite a strong performance in the past week with a return of 22.96%, the stock has underperformed its sector today by 6.29%. It is noteworthy that Art Nirman Ltd is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating some positive momentum. However, the company faces significant challenges, including operating losses and weak long-term fundamental strength, which are contributing to investor concerns. The company's ability to service its debt is weak, as evidenced by a poor EBIT to Interest ratio of 0.16, and it has reported negative net sales growth of 44.81% over the last six months.
In the broader market context, while Art Nirman Ltd has outperformed the Sensex over the past week and month, its year-to-date return of 9.94% is closely aligned with the benchmark's 9.82%. However, the stock's long-term performance is concerning, with a 3-year return of -14.32% compared to the Sensex's 46.40%. The company's low return on equity of 1.20% and a high price-to-book value ratio of 4.3 suggest that it is overvalued relative to its peers, further exacerbating the negative sentiment among investors. Overall, the combination of weak financial performance and high valuation metrics is likely driving the stock's current decline.