Why is Can Fin Homes falling/rising?

As of 07-Nov, Can Fin Homes Ltd. is experiencing a decline in its stock price, currently at 870.25, which reflects a decrease of 6.75 or 0.77%. Despite this drop, the stock has shown positive performance over the past month with an increase of 8.24%, and it has reached a new 52-week high of Rs. 891.2 earlier today. The stock is trading above its moving averages across various time frames, indicating a generally positive trend. However, it has underperformed its sector by 32.46% today, which may contribute to the current price decline. The company's strong long-term fundamentals, highlighted by a robust average Return on Equity (ROE) of 16.81% and significant institutional holdings at 36.39%, suggest that there is confidence in its future performance, despite the current price drop.
In the broader market context, Can Fin Homes has outperformed the Sensex over the past week with a return of 0.33% compared to the benchmark's decline of 0.86%. However, the stock's valuation is considered very expensive, trading at a premium relative to its peers, which could be a factor in the recent price movement. While the company has shown strong financial results, including record net sales and operating profit margins, the stock's modest return of 1.69% over the past year, coupled with a PEG ratio of 1, indicates that investors may be cautious about its valuation. Overall, while the stock has strong fundamentals, the combination of high valuation concerns and sector underperformance may be influencing the recent price decline.