Why is Axel Polymers falling/rising?

As of 30-Jun, Axel Polymers Ltd's stock price is currently at Rs 42.66, reflecting a decrease of Rs 2.24 or 4.99%. The stock has underperformed its sector by 5.66% today and has experienced a trend reversal after five consecutive days of gains. It reached an intraday low of Rs 42.66, with trading volume skewed towards this lower price. Over the past week, the stock has shown a return of +9.38%, but it has significantly underperformed over the longer term, with a year-to-date return of -21.36% and a one-year return of -37.15%. The company's high debt levels, with a debt-to-equity ratio of 2.31, and a substantial drop in profits by 92.4% over the past year contribute to its weak long-term fundamental strength, which negatively impacts investor sentiment.
In the broader market context, while the Sensex has gained 2.09% over the past week, Axel Polymers' short-term performance of +9.38% indicates some resilience compared to the benchmark. However, the company's long-term underperformance, evidenced by a -37.15% return in the last year against the Sensex's +5.79%, highlights a concerning trend. The stock's attractive valuation relative to peers is overshadowed by its high debt and declining sales, which are critical factors for investors. Overall, the combination of weak financial performance, high debt levels, and recent price declines suggests that the stock is facing significant challenges in regaining investor confidence.