Why is Nikhil Adhesives falling/rising?

As of 24-Jul, Nikhil Adhesives Ltd's stock price is currently at Rs 113.90, reflecting a decrease of Rs 1.1 or 0.96%. Today's price summary indicates that the stock underperformed its sector by 0.81% and opened with a loss of 2.61%, reaching an intraday low of Rs 112. Over the past week, the stock has declined by 0.91%, while it has shown a significant increase of 18.52% over the past month. Despite a strong ability to service debt, indicated by a low Debt to EBITDA ratio of 0.93 times, the stock has generated a negative return of -12.38% over the past year, which is concerning given that its profits have risen by 27.3%. The lack of domestic mutual fund investment may also signal a lack of confidence in the stock's valuation.
In the broader market context, the stock's recent performance contrasts with the benchmark, as it has underperformed the Sensex, which has only declined by 0.09% over the past week. While Nikhil Adhesives has shown some positive movement in the short term, its long-term growth prospects appear weak, with net sales growing at an annual rate of only 6.75% over the last five years. This underperformance relative to the market, combined with flat results reported in March 2025, suggests that investors may be cautious about the stock's future potential, contributing to its current decline.