Why is RACL Geartech falling/rising?

As of 20-Aug, RACL Geartech Ltd's stock price is currently at 858.85, reflecting a decline of 7.15 points or 0.83%. The stock has underperformed its sector today by 0.81%, with an intraday high of Rs 890.5, which indicates some volatility. Over the past week, the stock has decreased by 5.77%, and its performance over the last month shows a decline of 5.53%. The stock's year-to-date performance is down 2.18%, and it has significantly underperformed over the past year with a drop of 18.59%. The company's return on capital employed (ROCE) stands at 9.8, which suggests fair valuation, but its profits have fallen by 20% over the past year, contributing to the stock's downward trend. Additionally, the high Debt to EBITDA ratio of 2.82 indicates a low ability to service debt, further impacting investor sentiment.
In the broader market context, the Sensex has shown a positive return of 1.64% over the past week and a 4.76% increase year-to-date, contrasting sharply with RACL Geartech's negative performance. This disparity highlights the stock's struggle to attract investor confidence, as evidenced by a significant drop in delivery volume by 20.75% against the 5-day average. The company's low stake held by domestic mutual funds, at only 0.89%, may reflect a lack of comfort with the stock's current valuation or business prospects. Overall, while the broader market has been performing well, RACL Geartech's persistent underperformance and declining financial metrics have led to its current price decline.