Why is CG Power & Ind falling/rising?

As of 23-Sep, CG Power & Industrial Solutions Ltd is experiencing a slight increase in its stock price, currently at 772.40, reflecting a change of 2.35 (0.31%) upward. The stock has shown a trend reversal, gaining after four consecutive days of decline. Despite a recent drop of 2.47% over the past week, it has performed well over the past month with a return of 13.87%. The company has demonstrated strong long-term fundamentals, including a high average Return on Equity (ROE) of 36.30% and significant growth in net sales and operating profit. However, it faces challenges with a very expensive valuation and a recent decline in profits, which may temper investor enthusiasm.
In the broader market context, CG Power has outperformed the Sensex, which has seen a slight decline of 0.34% over the past week. While the stock's performance over the year has been slightly negative at -0.16%, it has significantly outperformed the benchmark over the last three years, with a return of 210.64% compared to the Sensex's 41.31%. The stock's liquidity remains adequate for trading, but a notable drop in delivery volume suggests a decrease in investor participation, which could impact future price movements. Overall, while the stock shows positive long-term potential, its current valuation and recent profit decline present risks that investors should consider.