Why is Natraj Proteins falling/rising?

As of 25-Jun, Natraj Proteins Ltd is experiencing a decline in its stock price, currently at Rs 39.60, reflecting a decrease of Rs 1.3 or 3.18%. The stock has underperformed its sector by 4.72% today and has been on a downward trend for the last two days, with a total drop of 4.99% during this period. Although it opened with a gain of 15.5% and reached an intraday high of Rs 47.24, it also hit a low of Rs 37.1, indicating high volatility with a wide trading range of Rs 10.14. The stock’s performance over the past year shows a significant decline of 21.92%, and it has consistently underperformed against the benchmark indices over the last three years. Additionally, the company has a weak long-term fundamental strength, highlighted by a negative CAGR growth in operating profits and a high Debt to EBITDA ratio, which negatively impacts investor confidence.
In the broader market context, Natraj Proteins' short-term performance contrasts sharply with the benchmark, as it has recorded a 5.51% decline over the past week while the Sensex has gained 1.61%. This consistent underperformance against the benchmark, coupled with a lack of strong financial fundamentals and flat results in recent quarters, contributes to the stock's negative sentiment among investors. Despite a rise in investor participation, indicated by a significant increase in delivery volume, the overall outlook remains weak due to the company's inability to generate adequate returns on equity and service its debt effectively.