Why is Rel. Chemotex falling/rising?

As of 24-Sep, Reliance Chemotex Industries Ltd is experiencing a decline in its stock price, currently at 160.40, reflecting a decrease of 1.0 (-0.62%). The stock has shown a downward trend, falling after two consecutive days of gains. It is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish sentiment. Additionally, the delivery volume has decreased significantly by 40.71% compared to the 5-day average, suggesting a drop in investor participation. Over the past year, the stock has underperformed with a return of -29.28%, while profits have increased by 187.3%. Despite a positive PAT of Rs 2.90 crore in the latest six months and an attractive valuation relative to peers, the stock's long-term fundamentals are weak, with a low ROCE and high debt levels contributing to its poor performance.
In the broader market context, Reliance Chemotex has underperformed against the benchmark, with a 1-week return of -1.63% compared to the Sensex's -1.18%. Over the last month, the stock has declined by 5.70%, while the Sensex has gained 0.50%. This consistent underperformance over the past three years, coupled with weak long-term growth metrics and a high Debt to EBITDA ratio, raises concerns among investors. The stock's inability to service debt and its overall weak long-term fundamental strength further exacerbate the negative sentiment, leading to a cautious outlook among market participants.