Why is EIH Assoc.Hotels falling/rising?

As of 04-Sep, EIH Associated Hotels Ltd is experiencing a decline in its stock price, currently at Rs 406.90, which reflects a decrease of Rs 10.6 or 2.54%. Today's performance indicates that the stock has underperformed its sector by 2.49%, following a trend reversal after two consecutive days of gains. The stock reached an intraday low of Rs 404.1, and trading volume has increased significantly, with a delivery volume rise of 371.49% compared to the five-day average. Despite these fluctuations, the stock remains above its moving averages for various periods, indicating some underlying strength. However, the recent quarterly results showed a significant decline in net sales and profits, which could be contributing to investor concerns.
In the broader market context, EIH Associated Hotels has outperformed the benchmark Sensex over the past week with a return of 6.92% compared to the Sensex's 0.80%. However, its year-to-date performance is slightly negative at -0.33%, while the Sensex has gained 3.30%. The company's low debt-to-equity ratio and healthy long-term growth in operating profit are positive factors, yet the flat results from the latest quarter and the high price-to-book value ratio suggest that the stock may be overvalued. Additionally, the lack of investment from domestic mutual funds could indicate a lack of confidence in the stock's current valuation, further impacting its price movement.