Why is SEAMEC Ltd falling/rising?

As of 25-Aug, SEAMEC Ltd's stock price is currently at 929.95, reflecting an increase of 33.4 points or 3.73%. The stock has shown a strong performance today, having outperformed its sector by 4.52% and gaining for the last five consecutive days, resulting in a total return of 9.79% over that period. The stock opened with a gain of 2.84% and reached an intraday high of Rs 943.8. Despite its recent gains, the company has faced challenges, including a high Debt to EBITDA ratio of 3.28 times, indicating a low ability to service debt, and a Return on Capital Employed averaging only 4.90%, which suggests low profitability. However, the company recently declared positive results for June 2025, with a significant growth in PAT and operating profit, which may have contributed to the stock's upward movement.
In the broader market context, SEAMEC Ltd's short-term return of 9.79% over the past week significantly outpaces the Sensex's modest gain of 0.45% during the same period. While the stock has performed well recently, it has still underperformed over the longer term, with a year-to-date decline of 21.98% compared to the Sensex's increase of 4.48%. This indicates that despite the recent positive momentum, the stock's overall performance remains concerning, particularly given its substantial drop of 38.57% over the past year. The combination of recent positive earnings results and improved investor participation may be driving the current price increase, but the long-term outlook remains challenged by high debt levels and low profitability.