Why is CARE Ratings falling/rising?

As of 08-Jul, CARE Ratings Ltd is experiencing a decline in its stock price, currently at Rs 1,804.80, reflecting a decrease of Rs 27.3 or 1.49%. The stock has underperformed its sector by 1.86% today and has been on a consecutive downward trend for the last two days, resulting in a total drop of 6.06%. The stock touched an intraday low of Rs 1,774.2, indicating a significant decline. Despite a strong performance over the past year with a return of 67.58%, the recent two-day decline and a decrease in delivery volume by 18.16% against the five-day average suggest waning investor interest. The company has shown positive financial results over the last seven quarters, with substantial growth in profit before tax and profit after tax, but concerns about its high valuation and slower long-term growth may be contributing to the recent price drop.
In the broader market context, while the Sensex has remained relatively stable with a slight increase of 0.02% over the past week, CARE Ratings' stock has decreased by 2.44% in the same timeframe. This underperformance against the benchmark indicates a specific weakness in the stock relative to the overall market. Although the company has high institutional holdings and has consistently outperformed the BSE500 over the last three years, the combination of a high Price to Book Value ratio and slower growth in net sales and operating profit could be causing investors to reassess their positions, leading to the current decline in stock price.