Why is Nikhil Adhesives falling/rising?

As of 02-Sep, Nikhil Adhesives Ltd is experiencing a price increase, currently at Rs 101.10, reflecting a rise of 1.65 (1.66%). Today's performance indicates that the stock opened with a gain of 3.07% and reached an intraday high of Rs 103, outperforming its sector by 1.57%. However, the stock has shown a decline of 11.97% over the past month and a significant drop of 20.77% over the last year, indicating a trend of underperformance against the benchmark. Despite this, the company exhibits strong management efficiency with a high return on capital employed (ROCE) of 25.55% and a low debt to EBITDA ratio of 0.93, suggesting a solid ability to service debt. Nevertheless, the stock's long-term growth prospects appear poor, with net sales growing at an annual rate of only 9.60% over the last five years, and recent negative financial results may weigh on investor sentiment.
In the broader market context, Nikhil Adhesives has outperformed the Sensex by 2.48% over the past week, while the benchmark has declined by 0.78%. However, the stock's year-to-date performance shows a decline of 14.97%, contrasting with the Sensex's increase of 2.58%. This consistent underperformance over the last three years, coupled with negative quarterly results, suggests that while there may be short-term gains, the long-term outlook remains challenging. The falling investor participation, as indicated by a 22.79% decrease in delivery volume, further highlights concerns regarding the stock's liquidity and overall market interest.