Why is Patanjali Foods falling/rising?

As of 21-Jul, Patanjali Foods Ltd is experiencing a decline in its stock price, currently at Rs 1,938.00, which reflects a decrease of 6.05 points or 0.31%. Despite this recent drop, the stock has shown strong performance over the past week and month, with returns of 15.68% and 17.45%, respectively. The stock is currently trading above its moving averages, indicating a generally positive trend prior to this decline. However, it has recently fallen after eight consecutive days of gains, and there has been a notable decrease in investor participation, with delivery volume dropping by 54.87% compared to the five-day average. The company has demonstrated strong financial health, with a low Debt to EBITDA ratio and consistent growth in net sales and operating profit, which supports its valuation despite the current price drop.
In the broader market context, while Patanjali Foods has outperformed the benchmark Sensex in various time frames, including a year-to-date return of 10.43% compared to the Sensex's 5.20%, the stock's recent decline comes amid a general market environment where the Sensex has shown minimal movement, down 0.06% over the past week. The stock's high institutional holdings suggest confidence from larger investors, yet its valuation appears expensive relative to peers, which may be contributing to the current selling pressure. Overall, while the company has positive fundamentals, the recent price movement reflects a combination of profit-taking after a strong rally and concerns over its valuation.