Why is Pondy Oxides falling/rising?

As of 07-Jul, Pondy Oxides & Chemicals Ltd is experiencing a decline in its stock price, currently at Rs 913.05, which reflects a decrease of Rs 19.8 or 2.12%. Despite this drop, the stock has shown strong performance over the past week, with a return of 4.81%, and a remarkable 19.92% increase over the past month. Today's trading saw the stock touch an intraday low of Rs 903, indicating a 3.2% decline at its lowest point. The stock is trading above its moving averages across various time frames, and there has been a notable increase in investor participation, with delivery volume rising by 38.83% compared to the five-day average. The company has also demonstrated strong financial health, with consistent positive results over the last four quarters, including a significant growth in net sales and a low debt-to-EBITDA ratio.
In the broader market context, while Pondy Oxides has underperformed its sector by 1.87% today, it has outperformed the Sensex over the past year with a return of 93.21% compared to the benchmark's 4.31%. The stock's valuation, however, raises concerns, as it is trading at a premium relative to its peers, with a high enterprise value to capital employed ratio. Although the company has shown consistent returns and strong financial metrics, the expensive valuation and the relatively lower growth in profits compared to stock returns may contribute to the current price decline.