Why is Essar Shipping falling/rising?

As of 21-Aug, Essar Shipping Ltd's stock price is currently at Rs 23.70, reflecting a decline of Rs 1.55 or 6.14%. The stock has been on a downward trend, having underperformed its sector by 6.38% today and experiencing a consecutive fall over the last five days, resulting in a total decline of 13.63%. It opened with a loss of 2.97% and reached an intraday low of Rs 23.70. The stock is trading below all its moving averages, indicating weak momentum. Despite the company reporting positive results for the last four consecutive quarters, it faces significant challenges, including a negative book value and a high debt-to-EBITDA ratio of 9.32 times, which raises concerns about its long-term fundamental strength.
In the broader market context, Essar Shipping's performance has significantly lagged behind the benchmark, with a one-week return of -8.64% compared to the Sensex's gain of 1.74%. Over the past year, the stock has declined by 53.73%, while the broader market has only fallen by 1.56%. This stark contrast suggests that investor sentiment towards Essar Shipping is particularly negative, as evidenced by the minimal stake held by domestic mutual funds, which may indicate a lack of confidence in the company's future prospects. The stock's high volatility and negative EBITDA further contribute to its perception as a risky investment, reinforcing the downward pressure on its price.