Why is Mercury EV-Tech falling/rising?

As of 23-Jul, Mercury EV-Tech Ltd's stock price is currently at Rs 50.97, reflecting a decrease of Rs 0.51 or 0.99%. The stock has recently hit a new 52-week low of Rs 50.6 and has been on a downward trend, losing 3.12% over the past week and underperforming its sector by 1.01% today. The stock has been declining for five consecutive days, and it is trading below all key moving averages, indicating a bearish sentiment. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 69.02% compared to the five-day average. While the company has shown strong long-term growth in net sales and operating profit, 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 contribute to its negative performance.
In the broader market context, Mercury EV-Tech has underperformed significantly compared to the benchmark Sensex, which has gained 0.11% over the past week and 5.87% year-to-date. The stock has generated a return of -27.58% over the past year, contrasting sharply with the market's positive performance. This underperformance may be reflected in the lack of interest from domestic mutual funds, which hold no stake in the company, suggesting a lack of confidence in its valuation and business prospects. Despite the company's impressive growth metrics, the combination of high debt levels, low profitability, and recent stock performance has led to a negative sentiment surrounding its shares.