Why is Nandani Creation falling/rising?

As of 24-Sep, Nandani Creation Ltd is currently priced at 37.82, showing no change (0.00%). The stock has underperformed in the short term, with a 1-week return of -0.87% compared to the Sensex's -1.08%. Additionally, it is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. The delivery volume has also decreased by 29.89% against the 5-day average, suggesting falling investor participation. Despite a very attractive valuation with a return on capital employed (ROCE) of 9.1 and a discount compared to peers, the stock has generated a negative return of -5.97% over the past year, while profits have risen by 27.1%. However, the company faces challenges such as a high debt-to-EBITDA ratio and a significant portion of promoter shares being pledged, which adds downward pressure on the stock.
In the broader market context, Nandani Creation's performance has been lackluster compared to the benchmark, particularly over the longer term, where it has underperformed the BSE500 in the last 1 year and 3 years. While the stock has shown a positive year-to-date return of +4.74%, this is still below the Sensex's +5.97%. The overall market sentiment appears to be cautious, especially given the company's weak long-term fundamentals and flat results in recent quarters, which could further contribute to the stock's struggles in maintaining upward momentum.