Why is Home First Finan falling/rising?

As of 30-Jun, Home First Finance Company India Ltd is experiencing a decline in its stock price, currently at Rs 1,377.70, which reflects a decrease of Rs 92.55 or 6.29%. Today's price summary indicates that the stock has underperformed its sector by 6.94% and has fallen after four consecutive days of gains, touching an intraday low of Rs 1,373.2. Despite this drop, the stock has shown strong performance over various periods, with a 33.01% return over the past year and a notable 36.14% CAGR growth in operating profits. However, the stock's high valuation, with a Price to Book Value of 5.6, raises concerns about its sustainability, especially as profits have only risen by 25% over the same period.
In the broader market context, the stock's recent performance contrasts with the benchmark Sensex, which has increased by 2.09% over the past week. While Home First Finance has outperformed the benchmark in the longer term, generating 29.96% returns year-to-date, the current decline suggests a potential market correction or profit-taking after a strong run. The stock's liquidity remains adequate for trading, but the recent price movement indicates that investor sentiment may be shifting, influenced by its high valuation relative to peers and the recent underperformance against sector expectations.