Why is Gujarat Fluoroch falling/rising?

As of the latest available data, Gujarat Fluoroch is experiencing a downward price movement, with a decline of 4.06% over the past week. The stock has shown a negative performance trend, with returns of -2.63% over the past month and -14.50% year-to-date, significantly underperforming the Sensex, which has gained 0.49% in the last week and 5.41% in the last month. Although the company has declared positive results for the last three consecutive quarters, including record net sales and operating profit margins, the stock's valuation appears expensive with a ROCE of 9.1 and a high enterprise value to capital employed ratio of 4.6. Additionally, the reduction in promoter stake by 1.19% may indicate a lack of confidence in the company's future prospects, further contributing to the stock's decline.
In the broader market context, Gujarat Fluoroch's performance has lagged behind the benchmark indices, with a year-over-year return of -13.82% compared to the Sensex's gain of 6.77%. This underperformance is evident over multiple time frames, including the last three years, where the stock has generated a return of -9.69% against the Sensex's impressive 41.87% increase. The company's market capitalization of Rs 40,468 crore positions it as the second largest in its sector, yet its overall returns have not matched the industry growth, which may be affecting investor sentiment and contributing to the stock's downward trajectory.