Why is HFCL falling/rising?

As of 01-Jul, HFCL Ltd is currently priced at 85.95, reflecting a decline of 0.71, or 0.82%. The stock has been underperforming, having lost 1.78% over the last three days, and it has also underperformed its sector by 0.69% today. In terms of returns, HFCL has generated a negative return of 1.77% over the past month and a significant decline of 25.00% over the past year, while its profits have decreased by 46.2%. The company has reported negative results for the last two consecutive quarters, with a substantial drop in net sales of 39.62%. Additionally, the stock's liquidity is adequate, but there has been a notable decrease in investor participation, with delivery volume falling by 44.5% compared to the five-day average. The company's high level of pledged promoter shares, which has increased recently, adds further downward pressure on the stock price.
In the broader market context, HFCL's short-term performance has been relatively weak compared to the benchmark, as it has underperformed the Sensex, which has gained 2.00% over the past week while HFCL has risen only 2.71%. The stock's long-term outlook is concerning, with a poor annual growth rate of operating profit and a low return on capital employed (ROCE) of 6.9. Despite trading at a discount compared to its peers, the overall sentiment remains negative due to the company's declining financial health and the increased proportion of pledged shares, which typically exacerbates price declines in falling markets.