Why is Kaveri Seed Co. falling/rising?

As of 13-Aug, Kaveri Seed Company Ltd's stock price is currently at 1,131.40, reflecting an increase of 32.5, or 2.96%. Today, the stock opened with a significant gain of 7.38%, reaching an intraday high of Rs 1179.95. Despite this positive movement, the stock has shown high volatility with an intraday volatility of 5.18%. Over the past week, Kaveri Seed has outperformed the sector by 0.69%, although it has experienced a decline of 0.42% over the past month. The company has demonstrated strong financial metrics, including a high return on equity (ROE) of 20.89% and a low debt-to-equity ratio, which contribute to its attractive valuation. However, the stock's profits have fallen by 5.8% over the past year, and the delivery volume has decreased significantly, indicating a potential decline in investor participation.
In the broader market context, Kaveri Seed's short-term performance of +3.42% over the past week contrasts with the Sensex, which has remained nearly flat at -0.01%. This indicates that the stock is gaining traction relative to the benchmark index. Despite a strong performance in the last three years, where it has consistently outperformed the BSE500, the recent drop in delivery volume and the stock trading at a premium compared to its peers may raise concerns among investors. The high institutional holdings at 23.22% suggest that informed investors are backing the stock, but the overall market sentiment and recent profit declines could temper enthusiasm moving forward.