Why is Neogen Chemicals falling/rising?

As of 30-Jul, Neogen Chemicals Ltd is currently priced at 1,550.25, reflecting a slight increase of 1.25 (0.08%). The stock has recently shown a trend reversal, gaining after three consecutive days of decline. However, it has underperformed its sector by 0.96% today and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has decreased by 0.54%, and it has seen a significant drop of 29.81% year-to-date, indicating ongoing challenges. Despite a high institutional holding of 30.32%, which suggests confidence from larger investors, the company faces issues such as a high Debt to EBITDA ratio of 2.96 times and low profitability, with a Return on Equity averaging only 9.58%. These factors contribute to a perception of poor long-term growth potential, further impacting investor sentiment.
In the broader market context, Neogen Chemicals has underperformed the Sensex, which has gained 4.28% year-to-date, while Neogen has seen a substantial decline. The stock's performance over the last year has also been negative at -7.72%, contrasting sharply with the benchmark's flat return of 0.03%. This consistent underperformance against the benchmark over the last three years highlights the challenges the company faces in generating returns for its shareholders. The combination of weak operating profit growth and a high PEG ratio of 3.9 suggests that the stock may be overvalued relative to its earnings growth, further complicating its market position.