Why is Pondy Oxides falling/rising?

As of 01-Jul, Pondy Oxides & Chemicals Ltd is experiencing a decline in its stock price, currently at Rs 852.65, reflecting a decrease of Rs 18.5 or 2.12%. Today's performance indicates that the stock has underperformed its sector by 0.84% and has reversed a trend of five consecutive days of gains, touching an intraday low of Rs 842.5. Despite this recent downturn, the stock has shown strong performance over the past year, with a return of 100.52%, significantly outperforming the BSE500. The company has demonstrated solid financial health, including a low Debt to EBITDA ratio of 0.86 times and positive results over the last four quarters, with net sales growth of 25.97%. However, the stock is considered expensive with a high valuation compared to its peers, which may be contributing to the current selling pressure.
In the broader market context, Pondy Oxides has outperformed the Sensex in the short term, with a 1-week return of 16.69% compared to the Sensex's 2.00%. However, the stock's year-to-date performance shows a slight decline of 0.27%, while the Sensex has gained 7.11%. The recent fall in investor participation, particularly from institutional investors who have reduced their stake by 1.07%, may also be influencing the stock's price movement negatively. This decrease in institutional interest, combined with the stock's high valuation and recent profit growth that has not kept pace with its stock price increase, suggests a cautious outlook among investors, contributing to the current decline in stock price.