Why is Neogen Chemicals falling/rising?

As of 12-Aug, Neogen Chemicals Ltd is experiencing a slight increase in its stock price, currently at Rs 1,451.00, reflecting a change of 2.5 (0.17%) upward. The stock has shown a performance improvement today, outperforming its sector by 0.99% and has been gaining for the last two days, with a total return of 2.39% during this period. However, it is still close to its 52-week low, just 3.69% away from Rs 1,397.45. Despite this recent uptick, the stock has had a challenging year, with a year-to-date decline of 34.30% and a one-year return of -16.56%. The company faces significant challenges, including a high Debt to EBITDA ratio of 2.96 times, low profitability indicated by a Return on Equity of 9.58%, and poor long-term growth with operating profit growth of only 15.27% over the last five years.
In the broader market context, Neogen Chemicals has underperformed against the benchmark, with a one-week return of +0.73% compared to the Sensex's -0.59%. While the stock has shown some short-term resilience, its long-term performance remains concerning, as it has consistently underperformed against the BSE500 over the past three years. The stock's liquidity is adequate for trading, but a significant drop in delivery volume indicates falling investor participation, which could further pressure the stock. Overall, despite the recent price increase, the underlying financial challenges and historical underperformance suggest a cautious outlook for Neogen Chemicals.