Why is Rajapalayam Mill falling/rising?

As of 22-Jul, Rajapalayam Mills Ltd is experiencing a decline in its stock price, currently at Rs 976.55, which reflects a decrease of Rs 17.35 or 1.75%. Today's performance indicates that the stock has underperformed its sector by 1.32%, with an intraday low of Rs 972.05, marking a drop of 2.2%. Despite trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, the stock has shown a negative trend with a year-to-date return of -13.19%. The company's long-term fundamentals are weak, highlighted by a staggering -215.55% CAGR growth in operating profits over the last five years and a poor EBIT to Interest ratio of 0.62, indicating challenges in servicing its debt. Additionally, the stock has generated a return of -5.06% over the past year, while domestic mutual funds hold no stake, suggesting a lack of confidence in the company's prospects.
In the broader market context, Rajapalayam Mills has outperformed the Sensex over the past week and month, with returns of +0.68% and +7.31%, respectively, while the benchmark has seen declines of -0.47% and -0.27%. However, this short-term outperformance contrasts sharply with its long-term underperformance, as the stock has lagged behind the BSE500 over the last three years, one year, and three months. The overall sentiment remains cautious due to the company's negative operating profits and low profitability per unit of shareholders' funds, which may contribute to the stock's current downward movement.