Why is CARE Ratings falling/rising?

As of 24-Jun, CARE Ratings Ltd's stock price is currently at Rs 1,761.90, reflecting a decline of Rs 65.4 or 3.58%. Today's price summary indicates that the stock underperformed its sector by 3.59%, with an intraday high of Rs 1,880.1 and a low of Rs 1,761.3. The stock has shown a mixed performance in the past week, down 5.81%, but has gained 2.85% over the past month and 30.01% year-to-date. Despite positive financial results over the last seven quarters, including significant growth in profit before tax and profit after tax, the stock faces challenges such as a high price-to-book ratio and relatively slow long-term growth in net sales and operating profit. Additionally, a notable drop in investor participation, with delivery volume decreasing by 56.99% against the five-day average, may be contributing to the recent price decline.
In the broader market context, the Sensex has increased by 0.58% over the past week, contrasting with CARE Ratings' decline, indicating that the stock is not keeping pace with the overall market performance. While the stock has outperformed the BSE 500 over the last three years, the recent underperformance relative to the benchmark suggests that investor sentiment may be shifting, particularly in light of the company's expensive valuation compared to its peers. The high institutional holdings at 53.13% could provide some support, but the falling delivery volume and the stock's premium valuation may be causing caution among investors, leading to the current downward price movement.