Why is Godfrey Phillips falling/rising?

As of 12-Aug, Godfrey Phillips India Ltd. is experiencing a decline in its stock price, currently at Rs 9,624.60, reflecting a decrease of Rs 213.15 or 2.17%. The stock has underperformed its sector by 1.89% today and has been on a downward trend for the last four days, accumulating a total decline of 11.37% during this period. Despite a strong performance over the past year with a return of 116.72%, the stock's recent movement is influenced by a significant drop in investor participation, as evidenced by a 69.34% decrease in delivery volume compared to the five-day average. While the company boasts high management efficiency and strong growth metrics, including a 64.1% increase in net profit and a low debt-to-equity ratio, its high valuation and premium pricing relative to peers may be contributing to the current sell-off.
In the broader market context, Godfrey Phillips' short-term performance contrasts with the benchmark Sensex, which has only declined by 0.59% over the past week. This indicates that the stock's recent struggles are more pronounced than the overall market trend. Although the company has demonstrated consistent returns and positive growth in operating profit, the current market sentiment appears to be cautious, likely due to the stock's expensive valuation and declining investor interest. The combination of these factors suggests that while the company has strong fundamentals, the recent price movement reflects a market reaction to its valuation and trading dynamics rather than a fundamental deterioration in its business performance.