Why is Dhanlaxmi Cotex falling/rising?

As of 30-Jul, Dhanlaxmi Cotex Ltd is experiencing a decline in its stock price, currently at 153.75, which represents a decrease of 3.1 or 1.98%. The stock has been underperforming, having fallen consecutively for the last five days, resulting in a total decline of 9.56% over the past week. It is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 62.77% compared to the 5-day average. While the stock has shown impressive long-term performance with a 125.94% return over the past year, it is currently facing challenges such as operating losses and weak fundamental strength, which contribute to its recent price movement.
In the broader market context, Dhanlaxmi Cotex's short-term performance contrasts sharply with the benchmark, as it has underperformed the Sensex, which has only declined by 1.50% over the same week. This underperformance is further highlighted by the stock's negative returns of 7.38% over the past month compared to the Sensex's decline of 2.54%. Despite the stock's strong long-term returns, the current operating losses and a very expensive valuation relative to its peers suggest that investors are cautious, leading to the stock's recent downward trend.