Why is KMG Milk Food falling/rising?

As of 18-Jul, KMG Milk Food Ltd's stock price is currently at Rs 47.50, reflecting a decrease of Rs 2.5, or 5.0%. The stock has underperformed its sector today by 4.77%, opening with a loss of 5% and touching an intraday low of Rs 47.5. Despite a strong performance in the long term, with a 36.81% return over the past year and a significant 126.19% increase over three years, recent trading has shown erratic patterns, including not trading on three days out of the last 20. Additionally, the stock's delivery volume has fallen sharply by 68.75%, indicating declining investor participation, which may contribute to the current price drop. While promoters have increased their stake by 0.95%, signaling confidence, the company faces challenges such as a negative book value and high debt levels, which could be weighing on investor sentiment.
In the broader market context, KMG Milk Food's short-term performance has been notably weaker than the benchmark, with a 1-week return of -5.92% compared to the Sensex's -0.90%. This underperformance in the short term, coupled with the company's weak long-term fundamentals, including a negative EBITDA and declining profits, suggests that investors may be cautious about the stock's future prospects. While the company's long-term growth has been impressive, the recent negative trends in trading activity and financial performance are likely contributing to the current decline in stock price.