Why is Mercury EV-Tech falling/rising?

As of 16-Jul, Mercury EV-Tech Ltd's stock price is currently at Rs 52.61, reflecting an increase of Rs 0.21 or 0.4%. The stock has shown a positive performance today, outperforming its sector by 0.27% and has been gaining for the last two days, with a total return of 1.31% during this period. However, it is important to note that the stock is still trading lower than its moving averages across various time frames and is close to its 52-week low, being only 3.06% away from it. Over the past week, the stock has declined by 1.65%, and over the past month, it has seen a significant drop of 13.37%. 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 consecutive quarters, it also faces challenges such as a high Debt to EBITDA ratio of 9.32 times and a low return on equity of 2.73%, which may contribute to investor caution.
In the broader market context, the stock has underperformed compared to the Sensex, which has gained 1.02% over the past month while Mercury EV-Tech has lost 13.37%. This underperformance is further highlighted by the fact that the stock has generated a negative return of 28.21% over the past year, while the broader market has seen a modest gain of 2.38%. The lack of domestic mutual fund investment, which stands at 0%, may indicate a lack of confidence in the stock's valuation or business prospects, despite its recent positive sales growth. Overall, while there are some positive indicators regarding the company's growth, the significant debt levels and poor market performance suggest a cautious outlook for investors.