Why is Deco-Mica falling/rising?

As of 29-Sep, Deco-Mica Ltd is experiencing a decline in its stock price, currently at 71.25, reflecting a decrease of 5.75 or 7.47%. The stock has underperformed its sector by 5.88% today and has been on a consecutive downward trend for the last six days, accumulating a total return loss of 11.49% during this period. It opened significantly lower today, with a loss of 6.43%, and reached an intraday low of Rs 70, indicating strong selling pressure. Additionally, the stock is trading below all key moving averages, and there has been a notable drop in investor participation, with delivery volume falling by 47.88% against the five-day average. Despite having a very attractive valuation with a return on capital employed (ROCE) of 10.9% and trading at a discount compared to peers, the stock's performance has been hindered by a 14.32% decline over the past year and a slight profit decrease of 0.9%.
In the broader market context, Deco-Mica's short-term performance has been significantly worse than the benchmark, with a one-week return of -11.30% compared to the Sensex's -2.18%. This stark contrast highlights the stock's struggles relative to the overall market. The company's weak long-term fundamentals, characterized by a high debt-to-EBITDA ratio of 3.40 times and low profitability indicated by an average return on equity of 8.68%, further contribute to investor concerns. The flat results reported in June, alongside the lowest debtor turnover ratio and net sales figures, suggest underlying operational challenges that may be influencing the stock's negative trajectory.