Why is Rainbow Foundat. falling/rising?

As of 04-Sep, Rainbow Foundations Ltd is experiencing a decline in its stock price, currently at Rs 83.20, which reflects a decrease of 4.37 or 4.99%. The stock opened lower today, down by 4.99%, and reached an intraday low of Rs 83.20. Despite a significant year-to-date return of 152.73% and a remarkable 259.24% increase over the past year, the stock has underperformed in the short term, with a 14.45% drop over the last week. The company's high debt levels, indicated by a debt-to-equity ratio of 5.42 times and low profitability per unit of shareholders' funds, contribute to concerns about its long-term fundamental strength. Additionally, the recent flat results in June, with a 26% decline in profit after tax compared to previous quarters, further exacerbate the negative sentiment.
In the broader market context, while the Sensex has shown a modest gain of 0.80% over the past week, Rainbow Foundations Ltd's performance has significantly lagged behind, indicating a divergence from the overall market trend. The stock's recent underperformance, combined with rising investor participation and liquidity, suggests that while there may be interest in the stock, the prevailing concerns regarding its financial health and high debt are driving its current decline. The attractive valuation metrics, such as a PEG ratio of 0.6 and a return on capital employed of 6.3, may not be sufficient to offset the negative impact of its weak long-term fundamentals and recent financial results.