Why is Mercury EV-Tech falling/rising?

As of 27-Jun, Mercury EV-Tech Ltd's stock price is rising, currently at Rs 59.99, reflecting an increase of Rs 1.79 or 3.08%. The stock has shown a positive performance today, outperforming its sector by 3.7% and achieving consecutive gains over the last three days, with a total return of 6.31% during this period. Additionally, the stock reached an intraday high of Rs 61.2, indicating strong investor interest. Despite a year-to-date decline of 33.37%, the company has reported healthy long-term growth with net sales increasing at an annual rate of 135.95% and operating profit at 115.68%. However, concerns remain due to a high Debt to EBITDA ratio of 9.32 times and a low return on equity of 2.73%, which may affect investor confidence.
Broader market context shows that while the stock has outperformed the benchmark Sensex in the short term with a 1-week return of 3.82% compared to the Sensex's 2.00%, it has significantly underperformed over the longer term, with a year-to-date return of -33.37% versus the Sensex's 7.58%. This underperformance, coupled with the lack of domestic mutual fund investment, suggests that institutional investors may be cautious about the stock's valuation and future prospects. Despite the recent positive momentum, the overall negative sentiment from the past year and the company's financial challenges could weigh on its future performance.