Why is Mercury EV-Tech falling/rising?

As of 28-Jul, Mercury EV-Tech Ltd's stock price is currently at Rs 51.79, reflecting an increase of Rs 3.24 or 6.67%. Today's price summary indicates that the stock has outperformed its sector by 7.61% and has experienced a trend reversal, gaining after seven consecutive days of decline. The stock reached an intraday high of Rs 53.38, marking a 9.95% increase. Despite this positive movement, the stock has underperformed over the past week and month, with returns of -0.12% and -13.67%, respectively. The company has shown healthy long-term growth, with net sales increasing by 553% in the latest six months and a significant rise in profit after tax (PAT) of 667.11%. However, it faces challenges such as a high Debt to EBITDA ratio of 9.32 times and a low return on equity (ROE) of 2.73%, indicating potential concerns about profitability and debt servicing.
Broader market context shows that while the stock has gained today, it has significantly underperformed the benchmark Sensex over the past year, with a return of -27.11% compared to the benchmark's -0.54%. The stock's performance over the last three years has been impressive, with a return of 527%, but the recent declines highlight volatility and investor caution. The lack of domestic mutual fund investment, holding only 0% of the company, may suggest a lack of confidence in the stock's valuation or business prospects, contributing to its overall underperformance in the market.