Why is Mangalam Drugs falling/rising?

As of 01-Sep, Mangalam Drugs and Organics Ltd is experiencing a price increase, currently at 76.33, reflecting a rise of 2.33 or 3.15%. Today's price summary indicates a trend reversal as the stock gained after five consecutive days of decline, opening with a gain of 3.54% and reaching an intraday high of Rs 77.45. Despite this positive movement, the stock has underperformed significantly over the past year, with a return of -40.13%, and has consistently lagged behind the benchmark indices. The company's financial health is concerning, with operating losses and a weak ability to service debt, as indicated by a poor EBIT to Interest ratio of 1.73. Additionally, the stock is trading at a discount compared to its peers, but the substantial decline in profits by -399.4% over the past year raises red flags for investors.
In the broader market context, Mangalam Drugs has underperformed against the Sensex, with a one-week return of -4.59% compared to the benchmark's -1.56%. This consistent underperformance highlights the challenges the company faces in a market that has seen a slight overall decline. While the stock's recent uptick may suggest a temporary recovery, the long-term fundamentals remain weak, as evidenced by negative results in recent quarters and a significant drop in net sales. The rising investor participation, indicated by increased delivery volume, may provide some short-term support, but the overall outlook remains cautious given the company's ongoing financial struggles.