Why is HDFC AMC falling/rising?

As of 05-Aug, HDFC Asset Management Company Ltd is experiencing a slight decline in its stock price, currently at Rs 5,670.00, reflecting a decrease of Rs 14.5 or 0.26%. Despite this minor drop, the stock has shown strong performance over the past month, with a return of 12.81%, and has consistently outperformed the benchmark Sensex, which has declined by 3.26% in the same period. The stock is trading above its moving averages, indicating a generally positive trend, although there has been a notable decrease in investor participation, with delivery volume falling by 21.14% against the 5-day average. The company has demonstrated strong fundamentals, with a robust average Return on Equity (ROE) of 28.86% and consistent positive results over the last ten quarters, contributing to its long-term growth narrative.
In the broader market context, HDFC AMC's short-term performance contrasts favorably with the Sensex, as it has gained 0.71% over the past week while the benchmark has lost 0.77%. This indicates that the stock is maintaining relative strength despite the recent price drop. However, the stock's high valuation, with a Price to Book Value of 14.9, raises concerns about its sustainability, especially as profits have only risen by 25.7% over the past year, leading to a PEG ratio of 1.8. While institutional holdings remain high at 38.63%, suggesting confidence from sophisticated investors, the combination of falling delivery volumes and high valuations may contribute to the stock's current price movement.