Why is Paras Defence falling/rising?

As of 26-Aug, Paras Defence and Space Technologies Ltd is experiencing a decline in its stock price, currently at Rs 651.60, which reflects a decrease of Rs 22.1 or 3.28%. The stock has underperformed its sector by 1.58% today and has been on a consecutive downward trend for the last two days, resulting in a total drop of 5.03%. Over the past week, the stock has decreased by 4.54%, and in the last month, it has fallen by 16.75%. Despite these short-term declines, the company has shown positive financial performance in recent quarters, with net sales growing by 23.37% and profit after tax increasing by 39.36%. The company maintains a low debt-to-equity ratio of 0.03, indicating financial stability, which may support a hold recommendation despite the recent price drop.
In the broader market context, the stock's performance over the last week and month significantly lags behind the benchmark Sensex, which has only declined by 1.05% and 0.83%, respectively. However, on a year-to-date basis, Paras Defence has outperformed the Sensex, with a return of 29.67% compared to the benchmark's 3.39%. This suggests that while the stock is currently facing short-term challenges, its long-term performance remains strong, having generated consistent returns over the past three years. The rising investor participation, indicated by an increase in delivery volume, may also suggest that some investors view the current price drop as a buying opportunity, potentially stabilizing the stock in the near future.