Why is Dr Lal Pathlabs falling/rising?

As of 29-Aug, Dr Lal Pathlabs Ltd is experiencing a decline in its stock price, currently at Rs 3,299.05, which reflects a decrease of Rs 12.95 or 0.39%. The stock has been on a downward trend, losing value for the past six consecutive days and recording a total decline of 4.38% during this period. Despite touching an intraday high of Rs 3,406, the stock's performance has been mixed, with a 1-week return of -2.11% compared to the Sensex's -1.84%, while it has shown a positive return of 9.15% over the past month. The stock's liquidity appears adequate, with a delivery volume increase of 45.76% against the 5-day average, indicating rising investor participation. However, the stock's valuation is considered very expensive, with a Price to Book Value of 12.7, which may be contributing to the recent price decline.
In the broader market context, Dr Lal Pathlabs' short-term performance has lagged behind the benchmark index, as indicated by its 1-week return compared to the Sensex. While the company has strong long-term fundamentals, including a high Return on Equity (ROE) of 20.50% and significant institutional holdings at 39.6%, the stock's recent performance reflects investor caution due to its high valuation relative to peers. Additionally, despite a year-over-year profit increase of 34.5%, the stock has generated a negative return of -1.39% over the past year, which may further influence investor sentiment and contribute to the current price decline.