Why is Laurus Labs falling/rising?

As of 22-Jul, Laurus Labs Ltd's stock price is currently at Rs 821.60, reflecting a decrease of Rs 7.8 or 0.94%. The stock has recently experienced a trend reversal, falling after two consecutive days of gains. It is currently 1.56% away from its 52-week high of Rs 834.45. Despite this decline, the stock has shown strong performance over the past month with a return of 25.86%, and an impressive 81.77% increase over the last year, significantly outperforming the benchmark Sensex, which has only risen by 2.09% in the same period. However, there has been a notable decrease in investor participation, with delivery volume dropping by 22.75% against the five-day average.
In the broader market context, while Laurus Labs has outperformed the benchmark in both the short and long term, the recent decline may be attributed to its expensive valuation metrics, including a ROCE of 8.8 and a PEG ratio of 1, indicating that the stock may be overvalued relative to its earnings growth. Despite high management efficiency and strong institutional holdings at 37.29%, the falling investor participation suggests a cautious sentiment among traders. Overall, while the company has demonstrated robust financial performance with significant profit growth, the recent price movement reflects a combination of profit-taking and concerns over valuation.