Why is Laurus Labs falling/rising?

As of 01-Aug, Laurus Labs Ltd is experiencing a decline in its stock price, currently at Rs 851.60, which reflects a decrease of Rs 22.65 or 2.59%. The stock has been on a downward trend, having fallen consecutively for the last three days, resulting in a total drop of 6.36% during this period. Despite this recent decline, the stock has shown strong performance over the longer term, with a 1-month return of 14.16% and an impressive 88.57% return over the past year. However, today's trading activity indicates a day low of Rs 846 and a significant drop in delivery volume, which has decreased by 32.63% compared to the 5-day average, suggesting reduced investor participation. While the company has demonstrated high management efficiency and strong growth in net profit, the recent price drop may be influenced by the overall sector performance, as the Pharmaceuticals & Drugs sector has fallen by 3.27%.
In the broader market context, Laurus Labs has outperformed the benchmark Sensex in both the short and long term, with a 1-week return of 1.52% compared to the Sensex's decline of 1.06%. This indicates that while the stock is currently facing a downturn, it has been able to generate positive returns relative to the market over recent periods. The stock's high institutional holdings at 37.63% suggest that informed investors have confidence in the company's fundamentals, despite concerns about its long-term growth potential and relatively high valuation metrics. The combination of recent price declines, falling investor participation, and sector-wide challenges may be contributing to the current stock movement, even as the company continues to report strong financial results.