Why is Granules India falling/rising?

As of 04-Aug, Granules India Ltd is currently priced at 454.55, reflecting an increase of 2.8, or 0.62%. The stock has shown a trend reversal by gaining after three consecutive days of decline. Despite this recent uptick, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a generally bearish trend. Over the past week, Granules India has underperformed the Sensex, with a return of -1.81% compared to the benchmark's slight gain of +0.16%. However, there has been a notable increase in investor participation, as evidenced by a 76.78% rise in delivery volume on August 1. The company boasts a high management efficiency with a return on capital employed (ROCE) of 18.77% and a low debt to EBITDA ratio of 0.91, which supports its ability to service debt. Despite a significant decline of -29.44% over the past year, the company's profits have increased by 17.9%, suggesting a potentially attractive valuation relative to peers.
In the broader market context, Granules India's recent performance contrasts with the Sensex, which has gained 3.69% year-to-date, while the stock has dropped 23.19% in the same period. This underperformance is compounded by the company's flat results in March 2025 and a low ROCE of 14.17% for the half-year, indicating challenges in long-term growth. Additionally, while the stock has high institutional holdings at 36.77%, which typically indicates confidence from more sophisticated investors, its overall performance has been below par in both the near and long term. The stock's negative returns over the last year and its underperformance against broader indices highlight the ongoing challenges it faces in regaining investor confidence.