Why is Malu Paper falling/rising?

As of 16-Jul, Malu Paper Mills Ltd is experiencing a decline in its stock price, currently at Rs 40.95, which reflects a decrease of Rs 1.05 or 2.5%. The stock has underperformed its sector today by 2.89%, touching an intraday low of Rs 40.73. Over the past week, the stock has seen a decline of 4.57%, while it has shown a modest increase of 4.65% over the past month. However, the year-to-date performance is concerning, with a drop of 9.28%. The company is facing significant challenges, including a high debt-to-equity ratio of 136.01 times, indicating weak long-term fundamental strength. Additionally, the stock has generated a return of -4.39% over the past year, with profits falling dramatically by 1302%, which contributes to its perception as a risky investment.
In the broader market context, the Sensex has declined by only 1.08% over the past week, indicating that Malu Paper's performance is lagging behind the benchmark. While the stock has shown some positive movement in the short term, its consistent underperformance against the benchmark over the last three years raises concerns. The company has also reported flat results in March 2025, with a negative EBITDA and poor long-term growth metrics, further exacerbating investor apprehension. Overall, the combination of high debt, weak sales growth, and significant underperformance relative to the market contributes to the stock's downward trajectory.