Why is Shalimar Paints falling/rising?

As of 29-Jul, Shalimar Paints Ltd. is experiencing a decline in its stock price, currently at Rs. 82.65, which reflects a decrease of 0.77 or 0.92%. The stock has hit a new 52-week low of Rs. 81.11 today and has been on a consecutive downward trend for the last nine days, resulting in a total drop of 15.54% during this period. Additionally, the stock has underperformed its sector by 1.98%. Over the past year, Shalimar Paints has generated a return of -42.60%, significantly lagging behind the BSE500 benchmark, which has seen a minimal change of -0.02%. The company's operating losses and weak long-term fundamentals, highlighted by a negative EBITDA and a poor EBIT to Interest ratio, further contribute to the stock's decline.
In the broader market context, Shalimar Paints' short-term performance has been notably worse than the benchmark, with a 1-week return of -13.55% compared to the Sensex's -1.03%. This consistent underperformance over the last three years, along with a lack of domestic mutual fund investment, indicates a lack of confidence in the company's future prospects. The stock's liquidity remains adequate for trading, but the overall sentiment is negative due to the company's weak financial health, as evidenced by declining operating profits and a high debt-equity ratio.