Why is Atlas Cycles falling/rising?

As of 03-Jul, Atlas Cycles (Haryana) Ltd is experiencing a decline in its stock price, currently at Rs 139.40, which reflects a decrease of Rs 3.2 or 2.24%. The stock has underperformed its sector by 2.26% today and has fallen after three consecutive days of gains. It touched an intraday low of Rs 136.55, indicating a drop of 4.24%. Despite this, the stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting some underlying strength. However, the company faces significant challenges, including operating losses and a weak ability to service its debt, as evidenced by a poor EBIT to Interest ratio of -12.36. Additionally, the company's return on equity is low at 2.35%, indicating limited profitability, which may contribute to the recent price decline.
In the broader market context, Atlas Cycles has shown a strong year-to-date return of 91.22%, significantly outperforming the Sensex, which has increased by only 6.53% during the same period. However, in the past month, the stock has decreased by 3.86%, while the Sensex has gained 3.10%, highlighting a recent divergence in performance. The stock's liquidity appears adequate, with a delivery volume increase of 28.27% against the 5-day average, but the overall sentiment is tempered by the company's financial instability and the risks associated with its negative EBITDA. These factors collectively contribute to the stock's current downward movement despite its historical performance.