Why is Kaveri Seed Co. falling/rising?

As of 25-Jun, Kaveri Seed Company Ltd's stock price is currently at 1,191.65, reflecting a decrease of 21.45 points or 1.77%. The stock has been on a downward trend, having fallen consecutively for the last 11 days, resulting in a total decline of 17.49% during this period. Despite its strong performance over the year with a return of 21.95%, the stock has underperformed in the short term, with a 1-week decline of 7.52% and a 1-month decline of 18.38%. The stock is trading above its 200-day moving average but below its shorter-term moving averages, indicating a bearish sentiment. Additionally, while there has been a notable increase in delivery volume, suggesting rising investor participation, the overall negative returns and declining profits of 5.8% over the past year contribute to the stock's recent struggles.
In the broader market context, Kaveri Seed Company Ltd's recent performance contrasts sharply with the benchmark, as the Sensex has gained 1.61% over the past week. This underperformance relative to the market may be influencing investor sentiment negatively. Although the company boasts high management efficiency and a low debt-to-equity ratio, the stock's premium valuation compared to peers and a high PEG ratio of 9.2 suggest that it may be overvalued in the current market environment. Furthermore, while institutional holdings are strong at 23.32%, which typically indicates confidence in the company's fundamentals, the recent profit decline and the stock's significant drop in value may be causing caution among investors, leading to the observed price decline.