Why is Sadhana Nitro falling/rising?

As of 26-Jun, Sadhana Nitro Chem Ltd's stock is currently priced at Rs. 10.02, reflecting a decline of 0.52 or 4.93%. The stock has reached a new 52-week low today and has been on a downward trend, losing value for the last 18 consecutive days, resulting in a total decline of 52.29% during this period. Over the past year, the stock has underperformed significantly, with a return of -81.53%, while the company's profits have increased by 85.8%. Despite a strong growth in net profit and attractive valuation metrics, the stock's weak long-term fundamentals, including a low return on capital employed and a high debt-to-EBITDA ratio, have contributed to its poor performance. Additionally, the increase in pledged promoter shares has added downward pressure on the stock price.
In the broader market context, Sadhana Nitro's short-term performance has been notably poor compared to the benchmark, with a 1-week return of -22.45% against a Sensex increase of 2.94%. This consistent underperformance against the benchmark over the last three years highlights the stock's struggles in a rising market. While there has been a rise in investor participation, as indicated by the increase in delivery volume, the overall sentiment remains negative due to the company's long-term growth challenges and the impact of pledged shares in a declining market.