Why is Mercury EV-Tech falling/rising?

As of 04-Sep, Mercury EV-Tech Ltd's stock price is currently at Rs 50.79, reflecting a decrease of Rs 1.0 or 1.93%. Today's price summary indicates that the stock has underperformed its sector by 2.33%, with an intraday high of Rs 53.4 and a low of Rs 50. The stock's performance over the past week shows a slight decline of 0.33%, while it has gained 0.40% over the past month. Despite healthy long-term growth, with net sales increasing at an annual rate of 123.69% and operating profit at 84.22%, the company faces challenges such as a high Debt to EBITDA ratio of 9.32 times and a low return on equity of 2.73%. These factors contribute to a perception of low profitability and high valuation, which may deter investors.
In the broader market context, the stock has significantly underperformed compared to the Sensex, which has risen by 0.80% over the past week. Over the last year, while the stock has declined by 28.13%, the benchmark has only fallen by 1.98%. This stark contrast highlights the stock's struggles in gaining investor confidence, particularly as domestic mutual funds hold no stake in the company, suggesting a lack of comfort with its current price or business outlook. Overall, the combination of high debt levels, low profitability, and underperformance relative to the market contributes to the stock's recent decline.