Why is MIC Electronics falling/rising?

As of 06-Oct, MIC Electronics Ltd is currently priced at 60.41, reflecting an increase of 0.59 (0.99%). The stock has shown a positive trend recently, gaining 6.47% over the last five days and outperforming its sector by 1.93%. However, despite this short-term gain, the stock has underperformed in the longer term, with a year-to-date return of -28.69% and a one-year return of -37.56%. The company's weak long-term fundamentals, indicated by a low Return on Capital Employed (ROCE) of 5.02% and a high Debt to EBITDA ratio of 3.45, contribute to concerns about its ability to service debt. Additionally, the recent decrease in promoter stake by 4.42% may signal reduced confidence in the company's future prospects.
In the broader market context, MIC Electronics has outperformed the Sensex in the short term, with a weekly return of +5.96% compared to the Sensex's +1.77%. However, the stock's long-term performance remains concerning, as it has significantly underperformed the market over the past year, where the BSE500 index returned -1.93%. This stark contrast highlights the challenges faced by MIC Electronics, as its substantial declines in profitability and the negative sentiment surrounding its financial health continue to weigh on investor confidence despite recent short-term gains.