Why is CARE Ratings falling/rising?

As of 26-Jun, CARE Ratings Ltd's stock price is currently at Rs 1,755.60, reflecting a decrease of Rs 33.4 or 1.87%. Today, the stock opened with a gain of 2.68%, reaching an intraday high of Rs 1,837 before falling to a low of Rs 1,747. The stock has underperformed its sector by 1.73% today, and the weighted average price indicates that more volume was traded closer to the low price. Despite a strong performance over the past year with a 67.08% return, the stock's recent decline can be attributed to falling investor participation, as evidenced by a 6.21% drop in delivery volume compared to the five-day average. While the company has shown consistent positive results and high institutional holdings, concerns about its long-term growth and high valuation relative to peers may be contributing to the current price movement.
In the broader market context, the stock has underperformed the Sensex over the past week, with a return of -5.10% compared to the benchmark's gain of 2.94%. However, over the past month, CARE Ratings has outperformed the Sensex, returning 3.33% against the benchmark's 1.92%. The recent decline in stock price, despite strong fundamentals such as low debt and consistent returns, suggests that market sentiment may be cautious due to the company's slower growth rates in net sales and operating profit over the last five years. This cautious sentiment, combined with the stock's premium valuation, may be influencing investor behavior and contributing to the current downward price trend.