Why is SAL Automotive falling/rising?

As of 30-Jul, SAL Automotive Ltd's stock price is currently at 265.00, reflecting an increase of 4.0 (1.53%). The stock opened with a gain of 5.36% today and reached an intraday high of Rs 275. Despite this positive movement, the stock has underperformed in the short term, with a 1-week return of -1.82% and a 1-month return of -1.85%. Key factors influencing this rise include healthy long-term growth, with net sales growing at an annual rate of 34.61% and operating profit at 43.51%. However, the company faces challenges such as a high Debt to EBITDA ratio of 8.88 times, indicating low ability to service debt, and a relatively low return on equity of 7.37%, which suggests low profitability per unit of shareholders' funds.
In the broader market context, SAL Automotive's recent performance contrasts with the benchmark, as the Sensex has seen a decline of -1.50% over the past week and -2.54% over the past month. While SAL Automotive has outperformed the sector today, the overall trend shows that it has struggled in the short term compared to the benchmark. The stock's long-term performance remains strong, with a 3-year return of 196.09%, indicating that it has been a market-beating performer over a longer horizon, despite recent volatility and declining investor participation.