Why is CARE Ratings falling/rising?

As of 02-Jul, CARE Ratings Ltd is experiencing a decline in its stock price, currently at Rs 1,804.65, which reflects a decrease of Rs 45.25 or 2.45%. Today's price summary indicates that the stock has underperformed its sector by 0.95% and has fallen after three consecutive days of gains, touching an intraday low of Rs 1,787, representing a drop of 3.4%. Despite a strong performance over the past year, with a return of 64.89%, the stock's recent movement may be influenced by its high valuation metrics, including a Price to Book Value of 6.7, which is considered expensive compared to peers. The company has shown consistent positive results over the last seven quarters, with significant growth in profit before tax and profit after tax, but concerns about long-term growth due to slower net sales and operating profit growth may be weighing on investor sentiment.
In the broader market context, the stock's performance over the past week shows a modest gain of 0.87%, slightly outperforming the Sensex, which increased by 0.79%. However, over the last month, CARE Ratings has lagged behind the benchmark, with a return of 0.26% compared to the Sensex's 2.50%. This underperformance, combined with the stock's recent price decline and high institutional holdings, suggests that while institutional investors may have confidence in the company's fundamentals, the current market dynamics and valuation concerns are contributing to the downward pressure on the stock price.