Why is Vamshi Rubber falling/rising?

As of 25-Jul, Vamshi Rubber Ltd's stock price is currently at Rs 49.80, reflecting a decline of Rs 2.1 or 4.05%. The stock opened the day with a gain of 4.78%, reaching an intraday high of Rs 54.38, but subsequently fell to its current price, indicating significant volatility. The stock has underperformed its sector by 2.98% today, and over the past week, it has seen a decline of 7.61%, while the Sensex has only decreased by 0.36%. Additionally, the stock's long-term performance shows a negative return of 7.78% year-to-date, despite a profit increase of 8% over the same period, highlighting a disconnect between stock performance and profitability. However, the company's weak long-term fundamental strength, characterized by a -0.72% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 4.88 times, raises concerns about its financial health.
In the broader market context, Vamshi Rubber's recent performance contrasts sharply with the benchmark, as it has significantly underperformed the Sensex, which has gained 4.25% year-to-date. The stock's current liquidity is adequate for trading, but a drastic drop in delivery volume by 95.93% against the 5-day average suggests waning investor interest. While the stock is trading at a discount compared to its peers and has a very attractive valuation with a ROCE of 7.6, the overall sentiment remains negative due to its weak operational metrics and flat results in recent quarters. This combination of factors contributes to the stock's downward movement in the market.