Why is Kavveri Defence falling/rising?

As of 09-Jul, Kavveri Defence & Wireless Technologies Ltd is experiencing a decline in its stock price, currently at Rs 65.17, which reflects a decrease of Rs 1.33 or 2.0%. The stock has recently underperformed its sector by 1.74% and has fallen after a notable 12-day streak of gains. Despite this drop, the stock remains close to its 52-week high, just 2.09% away from Rs 66.53. Over the past week, Kavveri Defence has shown a strong performance with a return of 17.61%, and it has significantly outperformed the benchmark Sensex over various periods, including a remarkable 158.20% increase over the last year. However, the recent decline may be attributed to a decrease in investor participation, as evidenced by a 16.53% drop in delivery volume compared to the 5-day average.
In the broader market context, while Kavveri Defence has outperformed the Sensex in the short term, the overall market has seen modest gains, with the Sensex rising only 0.15% over the past week. The company's strong financial results, including a 66.97% growth in net profit and a substantial increase in net sales and profit after tax, suggest a solid underlying performance. However, the high debt levels and expensive valuation metrics, such as a Price to Book Value of 4.2, may raise concerns among investors, contributing to the stock's recent volatility. Thus, while the long-term outlook remains positive, short-term fluctuations are influenced by both market conditions and investor sentiment.