Why is Bharat Dynamics falling/rising?

As of 08-Aug, Bharat Dynamics Ltd's stock price is currently at Rs 1,500.00, reflecting a decline of Rs 66.35 or 4.24%. The stock has been underperforming, having fallen consecutively for the last four days, with a total drop of 5.57% during this period. Today's trading saw the stock touch an intraday low of Rs 1,492, and it has underperformed its sector by 3.47%. Despite a strong performance year-to-date with a 33.59% increase, the stock has experienced a significant decline of 23.79% over the past month. While the company has a low debt-to-equity ratio and has seen increasing participation from institutional investors, it faces challenges due to poor long-term growth, with operating profit declining at an annual rate of 8.64% over the last five years.
In the broader market context, Bharat Dynamics' recent performance contrasts with the Sensex, which has only decreased by 0.92% over the past week. The stock's short-term return of -4.10% over the last week indicates a more pronounced decline compared to the benchmark. Although the company has shown consistent returns over the last three years and has outperformed the BSE500 in annual periods, its high valuation relative to peers and a significant drop in profits by 10.3% over the past year have contributed to investor concerns, leading to the current downward trend in stock price.