Why is KRN Heat Exchan falling/rising?

As of 29-Aug, KRN Heat Exchanger and Refrigeration Ltd's stock price is currently at Rs 879.00, reflecting a decrease of Rs 7.0 or 0.79%. The stock has been on a downward trend, having fallen for the last four consecutive days, resulting in a total decline of 7.93% over the past week. Despite opening with a gain of 2.14% today and reaching an intraday high of Rs 904.95, it also touched a low of Rs 856.95, indicating significant volatility. The stock's performance today underperformed the sector by 0.76%, and there has been a notable drop in investor participation, with delivery volume decreasing by 64.24% compared to the five-day average. While the company shows strong fundamentals, such as a high return on equity and healthy sales growth, its valuation is considered expensive, which may be contributing to the recent price decline.
In the broader market context, KRN Heat Exchanger's short-term performance has significantly underperformed the benchmark Sensex, which has only declined by 1.84% over the same week. However, the stock has shown resilience over the longer term, with a year-to-date return of 25.33%, compared to the Sensex's modest gain of 2.14%. This contrast highlights that while the stock is currently facing short-term challenges, its overall performance in the year has been strong, supported by increasing institutional investor participation and solid financial growth. Nonetheless, the high valuation and recent price drops may be causing caution among investors, impacting the stock's immediate outlook.