Why is Lakshmi Mills falling/rising?

As of 19-Aug, Lakshmi Mills Company Ltd is experiencing a decline in its stock price, currently at Rs 9,399.00, which reflects a decrease of Rs 150.8 or 1.58%. The stock has underperformed its sector by 2.87% today and has been on a consecutive downward trend for the last three days, resulting in a total decline of 4.58% during this period. Although the stock has shown strong performance over the long term with a year-to-date increase of 31.59% and a remarkable 59.01% return over the past year, recent financial results indicate a significant drop in profitability, with a net profit after tax of Rs -22.03 crore, marking a drastic decline of 1720.8% compared to previous quarters. Furthermore, despite trading at a discount compared to its peers, the company's weak long-term fundamentals, including a low return on capital employed (ROCE) and poor growth in net sales, contribute to the negative sentiment surrounding the stock.
In the broader market context, the stock's short-term performance has been notably weaker than the benchmark, with a 1-week return of -3.60% compared to the Sensex's gain of 1.76%. This underperformance highlights the challenges faced by Lakshmi Mills in the current market environment, especially given the recent negative financial results and the lack of confidence from domestic mutual funds, which hold only a minimal stake in the company. The combination of declining profitability, weak growth metrics, and investor hesitance suggests that the stock's recent price movement is influenced by both company-specific issues and broader market dynamics.