Why is Sangal Papers falling/rising?

As of 31-Oct, Sangal Papers Ltd is experiencing a decline in its stock price, currently at 205.25, which reflects a decrease of 10.7 points or 4.95%. The stock has underperformed its sector by 4.54% today and has been on a downward trend for the last two days, accumulating a total loss of 9.58%. It opened with a significant gap down of 4.98% and reached an intraday low of Rs 205.2. Over the past week, the stock has declined by 1.79%, while its performance over the last month shows a modest gain of 3.87%. However, year-to-date, the stock has plummeted by 27.98%, indicating a troubling long-term trend despite a recent rise in profits of 32.7%. The company's Return on Capital Employed (ROCE) is relatively low at 8.4, and its high Debt to EBITDA ratio of 4.07 times raises concerns about its ability to service debt, contributing to investor apprehension.
In the broader market context, Sangal Papers has significantly underperformed compared to the benchmark, with a one-year return of -21.18% against the BSE500's positive return of 4.13%. This underperformance is compounded by the fact that 38.76% of promoter shares are pledged, which can exert additional downward pressure on the stock in a declining market. The stock's liquidity is adequate for trading, but falling investor participation, evidenced by a 12.1% drop in delivery volume, suggests waning interest. Overall, the combination of weak long-term fundamentals, poor growth prospects, and negative market sentiment are contributing to the stock's current decline.