Why is Rathi Steel falling/rising?

As of 09-Jul, Rathi Steel & Power Ltd's stock price is currently at 30.75, reflecting a decrease of 0.25, or 0.81%. The stock has been experiencing a downward trend, having lost 1.6% over the last two days. Despite this, the stock's delivery volume has increased significantly, rising by 54.4% compared to the 5-day average, indicating rising investor participation. However, the stock has underperformed in the long term, with a year-to-date return of -25.45% and a one-year return of -35.45%. While the company reported a substantial growth in operating profit and net sales, the overall weak long-term fundamentals and low return on equity may be contributing to the stock's recent decline.
In the broader market context, the stock's performance over the past week shows a decline of 1.98%, while the Sensex has gained 0.15%. This underperformance relative to the benchmark highlights the challenges faced by Rathi Steel amidst a generally positive market environment. Although the promoters have increased their stake, reflecting confidence in the company's future, the weak ability to service debt and low profitability metrics suggest caution among investors. Overall, the combination of short-term price declines, weak long-term fundamentals, and relative underperformance against the benchmark indicates a challenging outlook for Rathi Steel.