Why is Mercury EV-Tech falling/rising?

As of 15-Jul, Mercury EV-Tech Ltd's stock price is currently at Rs 52.40, reflecting an increase of Rs 0.47 or 0.91%. Despite this slight uptick, the stock has shown a negative performance over the past week, down 3.89%, and a significant decline of 41.80% year-to-date. The stock is trading below all key moving averages and is close to its 52-week low, just 2.67% away. Additionally, investor participation has decreased, with delivery volume falling by 24.29% compared to the five-day average. While the company has reported healthy long-term growth with net sales increasing at an annual rate of 135.95% and positive results for the last three quarters, it faces challenges such as a high Debt to EBITDA ratio of 9.32 times and a low Return on Equity of 2.73%, which indicate potential profitability issues.
In the broader market context, the Sensex has shown a modest gain of 1.79% over the past month, contrasting sharply with Mercury EV-Tech's 11.83% decline during the same period. This underperformance highlights the stock's struggle to attract investor confidence, particularly as domestic mutual funds hold no stake in the company, suggesting a lack of comfort with its valuation. The stock's negative returns of 29.55% over the past year further emphasize its challenges, especially when compared to the benchmark's slight positive return of 0.37%. Overall, while there are positive indicators in terms of sales growth, the stock's high debt levels and low profitability metrics are contributing to its ongoing struggles in the market.