Why is Chola Financial falling/rising?

As of 01-Aug, Cholamandalam Financial Holdings Ltd is experiencing a decline in its stock price, currently at Rs 1,831.95, which represents a decrease of Rs 42.05 or 2.24%. The stock has underperformed its sector by 0.76% today and has been on a downward trend for the last three days, accumulating a total loss of 4.44%. Over the past week, the stock has seen a significant decline of 7.48%, while its performance over the past month shows a drop of 13.55%. Despite these short-term challenges, the company has demonstrated strong fundamentals, with positive results over the last ten consecutive quarters, including record net sales and cash equivalents. The stock's attractive valuation, with a price-to-book ratio of 2.7 and a PEG ratio of 0.7, suggests it is trading at a discount compared to its peers, which may support its long-term value.
In the broader market context, Cholamandalam's recent performance contrasts with the Sensex, which has only declined by 1.06% over the past week. This indicates that the stock's short-term struggles are more pronounced than the overall market trend. However, the company's strong institutional holdings at 40.22% and consistent returns over the last three years, where it has outperformed the BSE500, suggest that there is confidence in its long-term prospects despite the recent price drop. The rising investor participation, as indicated by the increased delivery volume, may also signal that some investors view the current price as an opportunity to buy into the stock.