Why is Megastar Foods falling/rising?

As of 03-Jul, Megastar Foods Ltd is experiencing a decline in its stock price, currently at Rs 278.15, down by Rs 4.2 or 1.49%. The stock has underperformed its sector by 1.71% today and has been on a consecutive fall for the last two days, resulting in a total drop of 4.09%. Despite a strong performance over the past month with a return of 12.16%, the stock's recent movement reflects a decrease in investor participation, as evidenced by a significant drop in delivery volume by 56.42% compared to the 5-day average. Additionally, while institutional investors have increased their stake by 0.54%, the stock's profits have fallen by 40% over the past year, indicating potential concerns about its financial health despite a fair valuation relative to peers.
In the broader market context, Megastar Foods' short-term performance contrasts with the benchmark Sensex, which has declined by 0.62% over the past week. The stock's year-to-date return of 25.66% significantly outpaces the Sensex's 6.53%, suggesting strong underlying performance over a longer horizon. However, the recent price drop and declining investor participation may signal caution among investors, particularly in light of the stock's recent underperformance relative to its sector and the broader market.