Why is Mercury EV-Tech falling/rising?

As of 18-Sep, Mercury EV-Tech Ltd's stock price is currently at 51.12, reflecting an increase of 0.96 or 1.91%. The stock has shown a positive trend recently, gaining 9.44% over the last two days and outperforming its sector by 2.67% today. In the past week, the stock has risen by 3.15%, and over the last month, it has increased by 11.93%. However, despite these short-term gains, the company has faced significant challenges, including a high Debt to EBITDA ratio of 9.32 times, which indicates a low ability to service debt. While the company has reported strong growth in net sales and operating profit, its return on equity remains low at 2.73%, suggesting profitability issues. Additionally, domestic mutual funds hold no stake in the company, which may reflect a lack of confidence in its valuation.
In the broader market context, Mercury EV-Tech's recent performance has outpaced the Sensex, which has risen by 1.80% over the past week. However, the stock has significantly underperformed over the longer term, with a year-to-date decline of 43.23% compared to the Sensex's gain of 6.24%. This stark contrast highlights the stock's volatility and the challenges it faces in regaining investor confidence, especially given its substantial drop of 51.23% over the past year while the broader market has only slightly declined. The combination of short-term gains against a backdrop of long-term struggles illustrates the complex dynamics affecting Mercury EV-Tech's stock price.