Why is Mercury EV-Tech falling/rising?

As of 30-Jun, Mercury EV-Tech Ltd's stock price is currently at 59.24, reflecting a decrease of 0.75, or 1.25%. The stock has recently underperformed its sector by 3.64% and has experienced a trend reversal, falling after three consecutive days of gains. In terms of returns, the stock has shown a 3.49% increase over the past week, but it has declined by 2.37% over the last month and has a year-to-date drop of 34.21%. Despite positive long-term growth indicators, such as a significant increase in net sales and operating profit, the company faces challenges with a high Debt to EBITDA ratio of 9.32 times and a low return on equity of 2.73%, which contribute to its expensive valuation and may deter investors.
Broader market context indicates that while the stock has underperformed, the benchmark Sensex has gained 2.09% over the past week and 2.65% over the past month. The stock's performance has been notably poor over the last year, with a return of -16.11%, contrasting sharply with the broader market's positive return of 7.00%. This underperformance, coupled with the lack of domestic mutual fund investment, suggests a lack of confidence in the company's valuation and future prospects, further contributing to the stock's decline.