Why is CG Power & Ind falling/rising?

As of 09-Sep, CG Power & Industrial Solutions Ltd is experiencing a decline in its stock price, currently at Rs 740.05, which reflects a decrease of Rs 6.2 or 0.83%. Today's performance indicates that the stock has underperformed its sector by 0.86%, with an intraday low of Rs 730.55, representing a drop of 2.1%. Despite this recent decline, the stock has shown strong performance over the past month with an increase of 11.06%, and it has consistently outperformed the BSE500 over the last three years, boasting a remarkable 225.65% return. However, the stock's recent fall can be attributed to a significant decrease in investor participation, with delivery volume dropping by 63.33% compared to the five-day average, which may signal reduced interest among investors.
In the broader market context, while CG Power's short-term performance has been weaker than the benchmark Sensex, which rose by 1.18% over the past week, the company has demonstrated strong long-term fundamentals with a robust average return on equity of 36.30% and healthy growth in net sales and operating profit. Nonetheless, the stock is perceived as expensive, trading at a premium compared to its peers, and its profits have declined by 3.6% over the past year despite generating positive returns. This combination of high valuation and declining profits may contribute to the current downward pressure on the stock price, even as it maintains a strong position within its sector.