Why is Sadhana Nitro falling/rising?

As of 03-Jul, Sadhana Nitro Chem Ltd's stock price is currently at Rs. 7.77, reflecting a decrease of 0.4 or 4.9%. The stock has hit a new 52-week low today and has been on a downward trend, losing value for the last 21 consecutive days, resulting in a staggering 62.46% decline over this period. Additionally, the stock has underperformed its sector by 4.87%. Over the past year, the stock has generated a return of -85.57%, despite the company reporting a significant growth in net profit of 58.91%. However, the company's long-term fundamentals are weak, with a low average return on capital employed and a high debt-to-EBITDA ratio, which raises concerns about its ability to service debt. Furthermore, 52.67% of promoter shares are pledged, which adds downward pressure in a falling market.
In the broader market context, Sadhana Nitro's short-term performance has been significantly worse than the benchmark, with a 1-week return of -22.46% compared to the Sensex's -0.62%. This consistent underperformance against the benchmark over the last three years indicates a lack of investor confidence. While the stock is trading at a discount compared to its peers and has shown attractive valuation metrics, the overall negative sentiment driven by weak fundamentals and high pledged shares has overshadowed these positives, leading to its continued decline.