Why is Mercury EV-Tech falling/rising?

As of 31-Jul, Mercury EV-Tech Ltd's stock price is currently at Rs 49.75, reflecting a decrease of Rs 3.84 or 7.17%. The stock has recently underperformed its sector by 6.87% and has fallen after three consecutive days of gains. It is also close to its 52-week low, just 2.99% away from Rs 48.26. In terms of performance, the stock has seen a significant decline of 14.86% over the past month and a staggering 44.75% year-to-date, despite a remarkable 502.30% increase over the last three years. The company's financial health is concerning, with a high Debt to EBITDA ratio of 9.32 times and a low Return on Equity of 2.73%, indicating challenges in servicing debt and profitability. Although the company has reported strong growth in net sales and operating profit, the overall market sentiment appears negative, contributing to the stock's decline.
Broader market context shows that while the Sensex has experienced a slight decline of 1.22% over the past week, Mercury EV-Tech's stock has managed a modest gain of 0.73% in the same timeframe. However, the stock's performance over the last year has been significantly worse than the broader market, which fell by only 3.20%. The lack of investment from domestic mutual funds, holding 0% of the company, suggests a lack of confidence in its valuation and business prospects. This combination of poor short-term performance, high debt levels, and low investor participation has led to a negative outlook for Mercury EV-Tech, resulting in its current price decline.