Why is Kaveri Seed Co. falling/rising?

As of 13-Jun, Kaveri Seed Company Ltd is experiencing a decline in its stock price, currently at 1,320.25, which reflects a decrease of 49.7 points or 3.63%. The stock has underperformed its sector by 0.52% today and has been on a consecutive downward trend for the last three days, resulting in an overall drop of 8.59% during this period. The stock opened lower today with a loss of 2.84% and reached an intraday low of Rs 1310, indicating significant selling pressure. Despite a strong year-to-date return of 50.90% and a one-year return of 46.15%, the company's profits have fallen by 5.8%, contributing to a high PEG ratio of 10.2, which may deter some investors. Additionally, while the company boasts high management efficiency and low debt, the stock is trading at a premium compared to its peers, which could be a factor in its recent price decline.
In the broader market context, Kaveri Seed Company's short-term performance has been notably weaker than the benchmark, with a one-week return of -7.63% compared to the Sensex's -1.30%. The agricultural seeds sector has also seen a decline of 3.11%, reflecting a challenging environment that may be impacting investor sentiment. Although there has been rising investor participation with an increase in delivery volume, the overall market conditions and sector performance suggest that external factors are contributing to the stock's recent struggles. The combination of high institutional holdings and management efficiency indicates potential for recovery, but current trends highlight significant challenges that the company faces in the short term.