Why is Kinetic Engg. falling/rising?

As of 03-Jul, Kinetic Engineering Ltd's stock price is currently at 265.35, reflecting a decrease of 6.95, or 2.55%. The stock has been underperforming, having fallen for three consecutive days, resulting in a total decline of 4.93% during this period. Today's trading saw the stock reach an intraday low of Rs 261.1, and the volume traded was notably lower than average, indicating a decrease in investor participation. Despite this recent downturn, the stock has shown strong performance over longer periods, with a 34.56% increase over the past month and a remarkable 250.76% rise over the last three years. Positive factors include rising promoter confidence, as they have increased their stake by 2.17%, and consistent returns over the last three years, although concerns about long-term fundamental strength and negative operating profits persist.
In the broader market context, Kinetic Engineering Ltd has outperformed the Sensex over the past week, gaining 6.40% compared to the benchmark's decline of 0.62%. However, the stock's recent performance is concerning, particularly given its underperformance today relative to its sector. The company's weak long-term fundamentals, highlighted by a low Return on Capital Employed (ROCE) and poor debt servicing ability, may be contributing to the current price decline. While the stock has shown strong historical returns, the recent flat quarterly results and negative operating profits raise questions about its sustainability, which could be influencing investor sentiment and leading to the current price drop.