Why is Relaxo Footwear falling/rising?

As of 25-Jul, Relaxo Footwears Ltd is experiencing a decline in its stock price, currently at Rs 481.70, which reflects a decrease of Rs 17.7 or 3.54%. The stock has underperformed its sector by 2.72% today, touching an intraday low of Rs 477.9. Over the past week, the stock has decreased by 4.94%, while it has shown a more positive trend over the past month with a gain of 14.88%. However, the stock has significantly underperformed over the longer term, with a year-to-date decline of 22.47% and a staggering 44.69% drop over the past year. The company's financial health is concerning, as it has reported negative results for the last four consecutive quarters, with a low return on capital employed (ROCE) and a high price-to-book value ratio, indicating an expensive valuation compared to peers.
In the broader market context, the benchmark Sensex has shown a slight decline of 0.36% over the past week, while Relaxo's performance has been notably worse. The stock's consistent underperformance against the benchmark over the last three years, coupled with falling participation from institutional investors, suggests a lack of confidence in the company's future growth prospects. The decline in delivery volume by 43.86% against the five-day average further indicates diminishing investor interest. Overall, the combination of poor long-term growth, negative financial results, and high valuations relative to peers contributes to the stock's downward trajectory.