Why is Mercury EV-Tech falling/rising?

As of 04-Aug, Mercury EV-Tech Ltd's stock price is currently at Rs 50.59, reflecting a decrease of Rs 0.30 or 0.59%. The stock has underperformed significantly, with a 1-week return of -2.32% and a 1-month return of -9.68%. Today's performance indicates that it is trading lower than all key moving averages, and it is also close to its 52-week low, being only 4.61% away from Rs 48.26. Additionally, there has been a notable decline in investor participation, with delivery volume dropping by 35.6% compared to the 5-day average. While the company has shown healthy 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 current valuation concerns.
In the broader market context, the Sensex has shown a slight increase of 0.16% over the past week, contrasting sharply with Mercury EV-Tech's decline. The stock has underperformed the market over the last year, with a return of -27.42% compared to the BSE500's -2.34%. This significant underperformance, coupled with the lack of domestic mutual fund investment, suggests a lack of confidence in the stock's future prospects. Despite the company's positive quarterly results, the overall sentiment remains cautious due to its high debt levels and low profitability, which may deter potential investors.