Why is EID Parry falling/rising?

As of 26-Aug, EID Parry (India) Ltd is experiencing a decline in its stock price, currently at Rs 1,129.40, which reflects a decrease of Rs 39.6 or 3.39%. The stock has underperformed its sector by 1.26% today and has been on a consecutive downward trend for the last two days, resulting in a total decline of 3.95%. Despite its strong long-term performance, with a year-to-date return of 26.69% and a one-year return of 39.17%, the stock has faced challenges recently, including a drop in profits by 11.7% over the past year. The company's low debt-to-equity ratio and significant cash reserves are positive indicators; however, its high valuation relative to peers may be contributing to the current price decline.
In the broader market context, EID Parry's short-term performance has lagged behind the benchmark, with a one-week return of -1.62% compared to the Sensex's -1.05%. The sugar sector has also seen a decline of 2.26%, which may be impacting investor sentiment. Although there has been a notable increase in investor participation, with delivery volumes rising significantly, the overall market conditions and sector performance appear to be weighing on the stock's price. The combination of high institutional holdings and a strong market position does provide some support, but the recent price movements suggest that investors are cautious amid the current valuation concerns and profit declines.