Why is Mercury EV-Tech falling/rising?

As of 18-Aug, Mercury EV-Tech Ltd's stock price is currently at Rs 45.67, reflecting a decrease of Rs 0.33 or 0.72%. The stock has hit a new 52-week low of Rs 45.05 today and has been on a downward trend, having fallen consecutively for the last four days, resulting in a 7.74% decline over the past week. The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish sentiment. While the company has shown healthy long-term growth with significant increases in net sales and operating profit, it also faces challenges such as a high Debt to EBITDA ratio of 9.32 times, which raises concerns about its ability to service debt. Additionally, the low return on equity of 2.73% suggests low profitability, contributing to the stock's negative performance.
In the broader market context, the stock has underperformed significantly compared to the benchmark, with a one-year return of -38.69% against the Sensex's modest gain of 1.04%. This stark contrast highlights the stock's struggles, especially as the market has generated negative returns of only -1.14% over the same period. Furthermore, the lack of investment from domestic mutual funds, which hold 0% of the company, may indicate a lack of confidence in the stock's valuation or business prospects. Overall, the combination of poor short-term performance, high debt levels, and low investor confidence contributes to the ongoing decline in Mercury EV-Tech's stock price.