Why is Flex Foods falling/rising?

As of 28-Jul, Flex Foods Ltd is experiencing a decline in its stock price, currently at Rs 57.95, reflecting a decrease of Rs 2.04 or 3.4%. The stock has underperformed its sector by 3.51% today, having touched an intraday low of Rs 56, which represents a significant drop of 6.65%. Over the past week, the stock has decreased by 1.78%, while its performance over the last month shows a modest increase of 7.26%. However, the year-to-date return is notably negative at -19.51%, and the one-year return is a substantial -58.92%. The company is facing challenges, including a high debt-equity ratio of 5.07 times, indicating weak long-term fundamental strength, and reported losses leading to negative return on equity (ROE). Additionally, the stock's liquidity appears to be declining, with a 93.02% drop in delivery volume compared to the five-day average.
In the broader market context, the Sensex has shown a slight decline of 1.59% over the past week, which is less severe than Flex Foods' performance. While the market has generated a negative return of 2.52% over the last year, Flex Foods' significant drop of 58.92% indicates that it has underperformed the market considerably. The company's flat results in March 2025 and a negative EBITDA further contribute to the perception of risk surrounding the stock, making it less attractive to investors. Overall, the combination of high debt, poor profitability, and declining investor participation suggests a challenging environment for Flex Foods, leading to its current price decline.