Why is Pondy Oxides falling/rising?

As of 01-Aug, Pondy Oxides & Chemicals Ltd is experiencing a decline in its stock price, currently at Rs 1,163.55, which reflects a decrease of Rs 19.25 or 1.63%. The stock has been under pressure, having fallen consecutively for the last two days, resulting in a total decline of 2.35% during this period. Despite this recent downturn, the stock has shown strong performance over the past month, with a 36.46% increase, and has outperformed the sector by 0.33% today. It is also trading above its moving averages, indicating a generally positive trend in the longer term. However, the delivery volume has significantly decreased, falling by 50.89% against the five-day average, which may indicate reduced investor interest.
In the broader market context, while Pondy Oxides has shown impressive returns over various periods, including a 60.03% increase over the past year, the benchmark Sensex has struggled, declining by 1.55% during the same timeframe. This contrast highlights the stock's relative strength, although the recent price drop may be influenced by its high valuation metrics, such as a ROCE of 13.3 and a premium trading status compared to peers. The company's strong financials, including a low Debt to EBITDA ratio and consistent profit growth, suggest potential for long-term growth, but the current market sentiment may be tempered by concerns over its valuation and declining investor participation.