Why is Eternal Ltd falling/rising?

As of 15-Jul, Eternal Ltd's stock price is currently at Rs 266.50, reflecting a decrease of Rs 4.25 or 1.57%. The stock has underperformed its sector by 1.95% today, following a trend reversal after two consecutive days of gains. It reached an intraday low of Rs 265.15, down 2.07%. Despite this decline, the stock has shown positive performance over the past week and month, with returns of 1.12% and 6.96%, respectively. However, the company faces challenges, including a high Debt to EBITDA ratio of -1.00 times and reported losses, which contribute to its negative return on capital employed (ROCE). While it has demonstrated healthy long-term growth with a 78.50% annual increase in net sales and high institutional holdings at 67.92%, the recent negative results and low ability to service debt may be impacting investor sentiment.
In the broader market context, Eternal Ltd's performance over the past week has outpaced the Sensex, which has declined by 1.36%. However, the stock's year-to-date performance shows a decline of 4.14%, contrasting with the Sensex's gain of 5.67%. The stock's consistent returns over the last three years, including a 16.32% return in the past year, indicate a strong historical performance, but the current negative operating profits and high PEG ratio of 13.1 suggest that the stock may be trading at a risky valuation compared to its historical averages. This combination of factors likely contributes to the stock's current downward movement.