Why is Multi Comm. Exc. falling/rising?

As of 12-Jun, Multi Commodity Exchange of India Ltd is experiencing a decline in its stock price, currently at Rs 7,507.00, which reflects a decrease of Rs 165.8 or 2.16%. The stock has been underperforming recently, having fallen for three consecutive days with a total decline of 5.97%. Today's trading saw the stock touch an intraday low of Rs 7,480, and it has also underperformed its sector by 1.05%. Despite these short-term challenges, the stock has shown strong performance over longer periods, with a 1-month return of 23.79% and a remarkable 97.83% return over the past year. The company has demonstrated solid fundamentals, including a high average return on equity of 14.36% and consistent growth in net sales and operating profit.
In the broader market context, while Multi Commodity Exchange has outperformed the Sensex over various time frames, including a 1-week return of 5.70% compared to the Sensex's 0.31%, the recent decline may be attributed to falling investor participation, as evidenced by a 14.68% drop in delivery volume against the 5-day average. Additionally, the stock's high valuation, indicated by a Price to Book Value of 20.3, may be causing some investor caution despite its strong long-term growth prospects and high institutional holdings at 79.91%. This combination of short-term underperformance and high valuation could be contributing to the current downward pressure on the stock price.