Why is Yarn Syndicate falling/rising?

As of 29-Jul, Yarn Syndicate Ltd's stock price is currently at 24.31, reflecting a decrease of 0.49, or 1.98%. The stock has recently underperformed its sector by 2.66% and has experienced a trend reversal, falling after six consecutive days of gains. Despite a strong performance over the past week and month, with returns of 15.05% and 27.95% respectively, the stock has a year-to-date decline of 17.73% and a staggering 54.13% drop over the past year. Positive factors include significant growth in net sales and profits, with a notable return on capital employed (ROCE) of 5, indicating an attractive valuation. However, the stock's long-term fundamental strength is weak, highlighted by a low average ROCE of 1.73% and a high debt to EBITDA ratio, which raises concerns about its ability to service debt.
In the broader market context, Yarn Syndicate's recent performance contrasts sharply with the benchmark, as it has underperformed the market significantly over the past year, where the BSE500 index reported a decline of only 2.26%. The stock's liquidity appears adequate for trading, but a notable drop in delivery volume by 44.87% against the five-day average suggests declining investor participation. This combination of weak long-term fundamentals and recent price movement indicates that while there may have been short-term gains, the overall sentiment remains negative, contributing to the stock's current decline.