Why is Neogen Chemicals falling/rising?

As of 18-Aug, Neogen Chemicals Ltd is experiencing a price increase, currently at 1,416.35, reflecting a rise of 16.25 or 1.16%. Despite this uptick, the stock has shown a negative trend over the past week and month, with declines of 2.22% and 9.24%, respectively. The stock is currently trading close to its 52-week low, just 1.49% away from Rs 1,395.25. Today's performance indicates a potential trend reversal as it has gained after two consecutive days of decline, reaching an intraday high of Rs 1,432.25. However, it is important to note that Neogen Chemicals is trading below its moving averages across various time frames, and there has been a significant drop in investor participation, with delivery volume decreasing by 71.97% compared to the five-day average. The company also faces challenges, including a high Debt to EBITDA ratio of 2.96 times, indicating a low ability to service debt, and a Return on Equity of only 9.58%, suggesting low profitability.
In the broader market context, Neogen Chemicals has underperformed against the benchmark, the Sensex, which has gained 0.83% over the past week while the stock has declined. The company has consistently shown weaker returns compared to the benchmark over the last three years, with a year-to-date decline of 35.87% against the Sensex's gain of 4.01%. This consistent underperformance, coupled with negative financial indicators such as a low operating profit to interest ratio and declining profit before tax, contributes to a challenging outlook for the stock. Despite high institutional holdings at 30.32%, which typically indicate a level of confidence from more knowledgeable investors, the overall financial health and growth prospects of Neogen Chemicals appear to be weighing heavily on its stock performance.