Why is Hikal falling/rising?

As of 24-Jul, Hikal Ltd's stock price is currently at 339.00, reflecting a decrease of 3.0 points or 0.88%. The stock has underperformed its sector by 1.23% today, hitting an intraday low of Rs 332.95, which is a decline of 2.65%. Over the past week, the stock has dropped by 3.50%, and it has seen a significant decline of 7.67% over the past month. Despite a strong growth in net profit of 191.86% reported in March 2025, the stock has struggled with poor long-term growth, as net sales have only grown at an annual rate of 4.38% over the last five years. Additionally, the stock is trading below all key moving averages, indicating a bearish trend, and there has been a notable drop in investor participation, with delivery volume falling by 40.7% against the five-day average.
In the broader market context, Hikal's performance has been disappointing compared to the benchmark, with a year-to-date return of -13.02% against the Sensex's gain of 5.18%. The stock has consistently underperformed the benchmark over the last three years, generating negative returns in each of the last three annual periods. While the company has attractive valuations and a positive return on capital employed (ROCE), the persistent underperformance against the market and the lack of significant sales growth have contributed to the stock's decline. Overall, the combination of weak short-term performance, declining investor interest, and long-term growth concerns has led to the current downward movement in Hikal's stock price.