Why is Kaveri Seed Co. falling/rising?

As of 22-Jul, Kaveri Seed Company Ltd is experiencing a decline in its stock price, currently at 1,122.15, reflecting a decrease of 2.05 points or 0.18%. The stock's performance today is in line with its sector, but it is trading lower than its 5-day, 20-day, 50-day, and 100-day moving averages, although it remains above the 200-day moving average. Additionally, the stock has seen a significant drop in investor participation, with delivery volume falling by 24.37% compared to the 5-day average. Over the past week, the stock has decreased by 2.70%, and over the past month, it has declined by 10.38%. Despite a year-to-date return of 28.26%, the company's profits have fallen by 5.8%, which may be contributing to the current downward pressure on the stock.
In the broader market context, Kaveri Seed's short-term performance has underperformed compared to the benchmark, with the Sensex declining only 0.47% over the same week. While the stock has shown strong long-term performance, generating a 16.28% return over the past year compared to the market's 2.09%, the recent drop in profits and the high PEG ratio of 8.7 suggest that the stock may be trading at a premium relative to its earnings growth potential. The high institutional holdings at 23.32% indicate that knowledgeable investors are backing the company, but the recent decline in delivery volumes and overall market conditions may be causing caution among retail investors.