Why is Hikal falling/rising?

As of 16-Jul, Hikal Ltd's stock price is currently at 345.80, reflecting a decrease of 2.2 points or 0.63%. The stock has recently underperformed its sector by 0.36% and has experienced a trend reversal, falling after three consecutive days of gains. In terms of performance against benchmarks, Hikal has shown a mixed picture; over the past week, it has gained 1.07%, while it has declined by 7.97% over the past month. Despite these short-term fluctuations, the company reported a significant growth in net profit of 191.86% in March 2025, alongside a strong return on capital employed (ROCE) of 9.82% and a low debt-equity ratio of 0.61, indicating solid financial health. However, the stock's performance over the year remains negative at -2.15%, despite a 30.7% increase in profits, which may contribute to investor caution.
In the broader market context, Hikal's recent performance contrasts with the Sensex, which has gained 1.02% over the past month and 5.75% year-to-date. This indicates that while Hikal has struggled, the overall market has been performing better. The stock's liquidity remains adequate, with a delivery volume increase of 43.04% against the 5-day average, suggesting rising investor participation. However, the stock is trading at a discount compared to its peers' average historical valuations, which may attract some investors looking for value. Overall, the combination of recent underperformance relative to the market and the mixed signals from financial metrics could explain the current downward movement in Hikal's stock price.