Why is Sh. Hari Chem. falling/rising?

As of 30-Sep, Shree Hari Chemicals Export Ltd is experiencing a decline in its stock price, currently at Rs 91.65, which represents a decrease of Rs 3.5 or 3.68%. The stock has been underperforming significantly, having fallen consecutively for the last four days, resulting in a total decline of 14.74% during this period. Additionally, it is trading below all key moving averages, indicating a bearish trend. Despite a rise in investor participation, with delivery volume increasing by 91.13% against the 5-day average, the company's operating losses and weak long-term fundamentals are contributing to the negative sentiment. The stock has also generated a return of -14.35% over the past year, despite a 38.9% increase in profits, which suggests that the market is not fully valuing the company's earnings potential.
In the broader market context, Shree Hari Chemicals has underperformed compared to the Sensex, which has seen a decline of only 2.23% over the past week while the stock itself has dropped by 8.76%. This stark contrast highlights the stock's weakness relative to the overall market. The company's valuation metrics, such as a PEG ratio of 0.3 and a return on capital employed (ROCE) of 14.7, suggest that it is trading at a discount compared to its peers. However, the recent negative financial results, including a significant drop in net sales and operating profit, overshadow these attractive valuation indicators, leading to a lack of investor confidence and contributing to the stock's downward trajectory.