Why is Avalon Tech falling/rising?

As of 06-Nov, Avalon Technologies Ltd is experiencing a decline in its stock price, currently at 1,059.85, which reflects a decrease of 89.2 points or 7.76%. The stock has underperformed its sector by 6.29% today and has seen a consecutive fall over the last two days, with a total decline of 11.04%. The stock traded within a wide range today, reaching a high of Rs 1,198.75 and a low of Rs 1,050, indicating high volatility with an intraday volatility of 8.75%. Despite a strong performance over the past year, where the stock generated a return of 79.41%, recent short-term performance has been negative, with a 1-week decline of 11.84% compared to a slight drop of 1.30% in the Sensex.
In the broader market context, Avalon Technologies' recent struggles contrast with its long-term performance, as it has outperformed the market significantly over the past year. However, the stock's current decline may be attributed to its high valuation metrics, such as a Price to Book Value of 11.6, which suggests it is trading at a premium compared to its peers. While the company has demonstrated strong fundamentals, including a low debt-to-equity ratio and impressive profit growth, the recent price drop may reflect market corrections or profit-taking by investors following its substantial gains. Additionally, the stock's recent volatility and underperformance relative to the benchmark may have contributed to a cautious sentiment among investors.