Why is Mahalaxmi Fab. falling/rising?

As of 22-Jul, Mahalaxmi Fabric Mills Ltd is experiencing a decline in its stock price, currently at 33.19, reflecting a decrease of 0.67 or 1.98%. The stock has underperformed its sector by 1.55% today and has been on a downward trend for the last two days, resulting in a total drop of 3.77%. Despite showing positive returns over the past week and month at 11.38% and 7.06% respectively, the company has faced significant challenges, including operating losses and a weak long-term fundamental strength. The latest financial results indicate a negative profit after tax of Rs -2.56 crore, with net sales at their lowest of Rs 26.36 crore, contributing to the stock's poor performance. Additionally, the company's ability to service its debt is weak, as evidenced by a poor EBIT to interest ratio of -0.54, which further dampens investor confidence.
In the broader market context, while the Sensex has shown a slight decline of 0.47% over the past week, Mahalaxmi Fabric Mills Ltd's short-term performance has been notably better, indicating a divergence in performance relative to the benchmark. However, the stock's year-to-date performance is concerning, with a significant drop of 32.81% compared to the Sensex's gain of 5.18%. The falling investor participation, highlighted by a 69.34% decrease in delivery volume, suggests a lack of confidence among investors, which is likely contributing to the stock's current downward trajectory. Overall, the combination of negative financial results, weak profitability, and declining investor interest are key factors driving the stock's recent decline.