Why is Coromandel Inter falling/rising?

As of 25-Jul, Coromandel International Ltd's stock price is currently at 2,433.00, reflecting a decrease of 5.85, or 0.24%. Despite this decline, the stock has shown strong performance in the past week, with a return of 5.34%, and has outperformed the sector by 1.07% today. The stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a generally positive trend. Additionally, there has been a significant increase in investor participation, with delivery volume rising by 141.56% compared to the 5-day average. The company's strong long-term fundamentals, highlighted by an average Return on Equity (ROE) of 21.78% and a healthy growth rate in net sales, support its valuation, although it is currently trading at a premium compared to its peers.
In the broader market context, Coromandel International has outperformed the Sensex over various time frames, including a 48.35% return over the past year compared to the benchmark's 1.78%. This strong performance suggests that the stock is resilient despite the current price drop. However, the stock's high valuation, indicated by a Price to Book Value of 6.5, raises concerns about its sustainability, especially as profits have only increased by 36.1% over the same period. The stock's recent decline may reflect market corrections or profit-taking by investors, despite its overall strong performance relative to the market.