Why is CEAT falling/rising?

As of 16-Jul, CEAT Ltd's stock price is currently at 3,876.45, reflecting a decrease of 9.25 points or 0.24%. The stock has been experiencing a slight decline, having fallen for the last two days with a total return of -0.41% during this period. Despite this recent downturn, CEAT has shown strong performance over the longer term, with a 42.15% return over the past year and a remarkable 214.25% increase over the last three years. The stock is currently trading above its moving averages, indicating a generally positive trend, and has seen a significant increase in investor participation, with delivery volume rising by 57.01% compared to the five-day average. However, it is important to note that the company's profits have decreased by 27.5% over the past year, which may contribute to investor caution.
In the broader market context, CEAT's recent performance contrasts with the Sensex, which has declined by 1.08% over the past week. While CEAT's short-term performance has dipped, its long-term growth prospects remain strong, supported by a healthy operating profit growth rate of 15.44% and high institutional holdings at 36.79%. The stock's attractive valuation compared to its peers and its ability to outperform the BSE500 in various time frames further bolster its appeal. However, the flat results reported in March and a low debtors turnover ratio may pose risks that could affect investor sentiment in the short term.