Why is ASM Technologies falling/rising?

As of 16-Jul, ASM Technologies Ltd is currently priced at 2,881.80, reflecting a decline of 52.5 points or 1.79%. Despite this recent drop, the stock has shown strong performance over the past week and month, with returns of 8.40% and 12.88%, respectively. The stock reached a new 52-week high of Rs. 2980 earlier today but has since underperformed its sector by 2.26%. The stock's recent trend reversal follows three consecutive days of gains, and it touched an intraday low of Rs. 2832. Although the stock is trading above its moving averages, the increase in delivery volume indicates rising investor participation, which could support future price recovery. The company's strong fundamentals, including a low Debt to EBITDA ratio and impressive growth in operating profit and net profit, suggest a solid long-term outlook. However, the stock's high valuation and lack of domestic mutual fund investment may raise concerns among investors.
In the broader market context, ASM Technologies has significantly outperformed the Sensex, with a year-to-date return of 110.50% compared to the benchmark's 5.75%. This stark contrast highlights the stock's strong performance relative to the market, particularly over the last three years, where it has generated returns of 531.56% against the Sensex's 53.71%. However, the recent decline in price may reflect a market correction after reaching new highs, as well as investor caution regarding its high valuation metrics. The stock's ability to maintain its upward trajectory will depend on continued strong performance in earnings and investor sentiment moving forward.