Why is Kaveri Seed Co. falling/rising?

As of 04-Jul, Kaveri Seed Company Ltd's stock price is currently at 1,172.15, reflecting a decrease of 27.85 points or 2.32%. The stock has underperformed its sector by 1.07% today and has experienced a trend reversal after two consecutive days of gains. It touched an intraday low of Rs 1167.35, indicating a decline of 2.72%. Over the past week, the stock has shown a slight decrease of 0.08%, while its performance over the last month has been significantly negative at -20.88%. Despite this recent downturn, the stock has generated a return of 22.17% over the past year, outperforming the broader market, although its profits have fallen by 5.8% during the same period. The company maintains a high management efficiency with a return on equity (ROE) of 20.89% and a low debt-to-equity ratio, which supports its valuation despite the recent price drop.
In the broader market context, Kaveri Seed Company's recent performance contrasts with the benchmark Sensex, which has seen a decline of 0.74% over the past week and a positive return of 3.01% over the last month. While the stock has outperformed the market over the past year, its current decline may be influenced by a combination of recent profit reductions and a premium valuation compared to its peers. The stock's liquidity remains adequate, with rising investor participation noted through increased delivery volume, suggesting that while there may be short-term pressures, the underlying fundamentals and institutional support could provide a stabilizing effect in the longer term.