Why is Hind Rectifiers falling/rising?

As of 28-Aug, Hind Rectifiers Ltd is experiencing a decline in its stock price, currently at Rs 1,556.00, which reflects a decrease of Rs 26.15 or 1.65%. The stock has been underperforming, having fallen for the last six consecutive days, resulting in a total decline of 23.57% during this period. Today's performance indicates that the stock has underperformed its sector by 2.95%. Despite a strong year-to-date return of 11.94% and a remarkable 59.10% increase over the past year, the recent trend suggests a significant downturn, exacerbated by a sharp drop in investor participation, with delivery volume decreasing by 62.19% compared to the five-day average. The company's recent financial performance has been strong, with an 84.85% growth in net profit and consistent positive results over the last 11 quarters, but the high valuation metrics and low domestic mutual fund interest may be contributing to investor caution.
In the broader market context, Hind Rectifiers has underperformed the benchmark Sensex in the short term, with a one-week return of -8.14% compared to the Sensex's -2.34%. While the stock has shown impressive long-term performance, including a staggering 821.53% increase over three years, the current market sentiment appears to be influenced by the recent consecutive declines and concerns over valuation, as indicated by its high enterprise value to capital employed ratio. The lack of domestic mutual fund investment may further reflect a cautious outlook among institutional investors, potentially impacting the stock's recovery in the near term.