Why is Parag Milk Foods falling/rising?

As of 17-Sep, Parag Milk Foods Ltd is currently priced at 290.30, reflecting a decrease of 1.5 points or 0.51%. The stock has experienced a consecutive decline over the past two days, with a total drop of 2.6% during this period. Despite this recent downturn, the stock has shown strong performance over the longer term, with a 60.25% return over the past year and a remarkable 138.44% increase over the last three years. The stock is trading above its moving averages across various time frames, indicating a generally positive trend. However, there has been a notable decrease in investor participation, with delivery volume falling by 36.91% compared to the five-day average. Institutional investors have increased their stake, which may provide some support to the stock's valuation, as it is trading at a discount compared to its peers.
In the broader market context, Parag Milk Foods has outperformed the benchmark Sensex significantly, with a 36.71% return over the past month compared to the Sensex's 2.60%. This strong performance in the long term, combined with a solid return on capital employed and an attractive valuation, suggests that the stock has the potential for recovery despite its recent price decline. The stock's liquidity remains adequate for trading, which may help mitigate some of the impacts of the recent drop in delivery volumes. Overall, while the stock is currently facing a short-term decline, its long-term fundamentals and institutional interest may provide a foundation for future growth.