Why is Liberty Shoes falling/rising?

As of 01-Sep, Liberty Shoes Ltd is currently priced at 318.20, reflecting an increase of 4.3 (1.37%). The stock has shown a positive trend recently, gaining 3.31% over the last two days, although it opened the day with a loss of 2.34% and reached an intraday low of Rs 305.55. In terms of performance against benchmarks, the stock has outperformed its sector by 0.35%. However, over the past year, it has underperformed significantly, with a return of -32.30%, compared to a -2.43% return for the Sensex. The stock's valuation appears attractive with a Return on Capital Employed (ROCE) of 9.8 and a low enterprise value to capital employed ratio, but it has faced challenges with a high Debt to EBITDA ratio of 2.54 times and declining profits, which have fallen by 15.7% over the past year.
Broader Market Context: In the short term, Liberty Shoes has outperformed the benchmark with a 1-week return of +0.86% compared to the Sensex's -1.56%. Despite this recent uptick, the stock has struggled over longer periods, with a year-to-date decline of -33.83% against the Sensex's +2.85%. The broader market context indicates a challenging environment, as the stock has not only underperformed the market over the last year but also reflects a lack of confidence from domestic mutual funds, which hold no stake in the company. This lack of investment from institutional players may suggest concerns regarding the company's long-term growth prospects and ability to service its debt, contributing to the stock's volatility.