Why is Ganga Forging falling/rising?

As of 19-Aug, Ganga Forging Ltd's stock price is currently at Rs. 3.37, reflecting a decline of Rs. 0.08 or 2.32%. The stock has recently hit a new 52-week low of Rs. 3.3 and has underperformed its sector by 3.93%. Over the past week, the stock has decreased by 5.07%, and its year-to-date performance shows a significant drop of 51.30%. The company has reported an operating loss, with a return on capital employed (ROCE) of only 3.8, indicating weak profitability. Additionally, the stock is trading below all major moving averages, and there has been a notable decline in investor participation, with delivery volume falling by 47.61% compared to the five-day average. Institutional investors have also reduced their stake in the company, which reflects a lack of confidence in its long-term fundamentals.
In the broader market context, Ganga Forging's performance contrasts sharply with the benchmark, as it has consistently underperformed the Sensex, which has gained 5.65% year-to-date. The stock's returns over the past year have been particularly poor, generating a loss of 51.51%, while the Sensex has only increased by 1.66%. This consistent underperformance over the last three years, combined with the company's high debt-to-EBITDA ratio of 4.56 times and declining profits, suggests that Ganga Forging is facing significant challenges that are contributing to its falling stock price.