Why is Sadhana Nitro falling/rising?

As of 18-Jul, Sadhana Nitro Chem Ltd's stock price is currently at 7.41, reflecting a decrease of 0.09 or 1.2%. The stock has been experiencing a downward trend, having fallen for the last two days with a total decline of 3.39% during this period. In terms of performance against the benchmark, the stock has underperformed significantly over the past year, with a return of -88.53% compared to the Sensex's modest gain of 0.51%. Additionally, the stock's delivery volume has decreased dramatically by 92.6% against the 5-day average, indicating falling investor participation. While the company reported a substantial growth in net profit of 58.91% and has attractive valuation metrics, the long-term fundamentals remain weak, with a low return on capital employed and a high debt-to-EBITDA ratio, which may contribute to the stock's decline.
Broader market context shows that the stock's short-term performance has been relatively poor compared to the benchmark, as it has gained 6.01% over the past week while the Sensex has declined by 0.90%. Despite the recent positive earnings report, the stock's historical underperformance against the benchmark over the last three years and the high percentage of pledged promoter shares add to the negative sentiment surrounding it. The combination of these factors suggests that while there may be some short-term fluctuations, the overall outlook for Sadhana Nitro Chem Ltd remains challenging in the current market environment.