Why is Avanti Feeds falling/rising?

As of 19-Aug, Avanti Feeds Ltd. is currently priced at 654.95, reflecting a decrease of 7.05, or 1.06%. The stock's performance today is in line with the sector, but it has shown a decline of 1.47% over the past week and 12.80% over the past month, while the benchmark Sensex has increased by 1.76% and decreased by only 0.14% in the same periods, respectively. Additionally, the stock is trading above its 5-day moving average but below its longer-term moving averages, indicating mixed momentum. Notably, there has been a significant drop in investor participation, with delivery volume falling by 48.08% compared to the 5-day average. Despite these challenges, the company boasts strong financial metrics, including a high return on equity (ROE) of 16.17%, a low debt-to-equity ratio, and positive results over the last five quarters, which may support its valuation.
In the broader market context, while Avanti Feeds has underperformed the Sensex in the short term, it has shown resilience over a longer horizon, with a 40.73% return over the past three years compared to the benchmark's 36.88%. The stock's recent decline may be attributed to its short-term performance lagging behind the market, coupled with reduced trading activity, which can affect liquidity and investor sentiment. However, the company's strong fundamentals, including a significant increase in profits and an attractive valuation relative to peers, suggest that the current price drop may not reflect its long-term potential.