Why is HBL Engineering falling/rising?

As of 11-Jul, HBL Engineering Ltd's stock price is currently at Rs 610.10, reflecting a decline of Rs 14.25 or 2.28%. The stock has underperformed its sector by 0.73% today, with an intraday low of Rs 607.75. Over the past week, the stock has decreased by 3.20%, while it has shown a slight decline of 0.11% over the past month. Despite a strong long-term growth rate in operating profit of 54.29% annually and consistent returns over the last three years, the company has faced challenges, including a significant fall in net sales of 9.49% and negative results in the last two consecutive quarters. The stock's valuation appears expensive with a Price to Book Value of 11.4, and its profits have decreased by 7.5% over the past year, which may contribute to investor concerns.
In the broader market context, the Sensex has declined by only 1.12% over the past week, indicating that HBL Engineering's short-term performance is lagging behind the benchmark. While the stock has outperformed the BSE500 over the last three years, the recent negative financial results and a low stake from domestic mutual funds suggest a lack of confidence in the company's current valuation and business prospects. This combination of factors likely explains the stock's recent downward movement, as investors weigh the company's declining performance against its historical growth.