Why is Loyal Equipments falling/rising?

As of 18-Sep, Loyal Equipments Ltd is experiencing a decline in its stock price, currently at 219.85, reflecting a decrease of 2.15 or 0.97%. The stock has underperformed its sector by 1.2% today and has been on a consecutive downward trend for the last two days, with a total decline of 1.39%. Although it opened with a gain of 2.25% and reached an intraday high of Rs 227, it also hit a low of Rs 216.2, indicating volatility. Over the past week, the stock has shown a positive return of 5.75%, but it has significantly underperformed over the longer term, with a year-to-date decline of 20.05% and a one-year drop of 25.31%. Factors contributing to this decline include a poor long-term growth outlook, as evidenced by a low annual net sales growth rate of 14.52% over the last five years and flat results reported in June. Additionally, the stock's high valuation, reflected in a Price to Book Value of 4.7, raises concerns despite its high management efficiency and low debt-to-equity ratio.
In the broader market context, the stock's performance contrasts sharply with the benchmark Sensex, which has gained 6.24% year-to-date. While the market has shown resilience, Loyal Equipments has consistently underperformed, with a one-year return of -25.31% compared to the market's decline of only 1.96%. This significant disparity highlights the challenges faced by the company, including a low debtors turnover ratio and stagnant sales figures, which have led to a lack of investor confidence and reduced participation in trading. Overall, the combination of poor financial performance and high valuation metrics has contributed to the stock's recent downward movement.