Why is Kalyani Forge falling/rising?

As of 23-Jun, Kalyani Forge Ltd's stock price is currently at Rs 742.00, reflecting a decrease of Rs 11.4 or 1.51%. The stock has underperformed its sector by 2.49% today and has experienced a trend reversal after two consecutive days of gains, touching an intraday low of Rs 726.9, which is a decline of 3.52%. Despite this recent downturn, Kalyani Forge has shown strong performance over the longer term, with a year-to-date return of 8.57% and a remarkable 297.22% increase over the past three years. The company has declared positive results for the last three consecutive quarters, with a significant growth in profit after tax (PAT) of 214.1%, and it is trading at a discount compared to its peers, indicating a fair valuation.
In the broader market context, Kalyani Forge's short-term performance of +0.95% over the past week contrasts with the Sensex's modest gain of +0.12%. While the stock has faced a decline recently, its consistent returns over the past three years and a robust profit growth of 82.9% over the last year suggest underlying strength. The rising investor participation, evidenced by a 39.57% increase in delivery volume, indicates continued interest in the stock despite its current price drop. Overall, while the stock is facing short-term challenges, its long-term trajectory remains positive, supported by strong financial performance and favorable valuations.