Why is Sadhana Nitro falling/rising?

As of 29-Jul, Sadhana Nitro Chem Ltd's stock price is currently at 7.21, reflecting a decrease of 0.14 or 1.9%. The stock has been on a downward trend, having underperformed its sector by 2.32% today and experiencing a consecutive fall over the last four days, resulting in a total decline of 7.56%. Additionally, the stock has shown significant underperformance over various time frames, with a 1-month return of -24.26% and a staggering 1-year return of -89.58%. Despite a recent growth in net profit of 58.91% and attractive valuation metrics, the stock's long-term fundamentals are weak, characterized by a low return on capital employed and a high debt-to-EBITDA ratio. Furthermore, the increasing proportion of pledged promoter shares adds to the downward pressure on the stock price.
In the broader market context, Sadhana Nitro's short-term performance has been significantly worse than the benchmark, with the Sensex only declining by 1.03% over the past week compared to the stock's 6.36% drop. This consistent underperformance against the benchmark over the last three years highlights the challenges the company faces in gaining investor confidence. The liquidity of the stock has also decreased, with a notable drop in delivery volume, indicating reduced investor participation. Overall, the combination of weak fundamentals, high debt levels, and poor market sentiment has contributed to the stock's decline.