Why is Pondy Oxides falling/rising?

As of 14-Aug, Pondy Oxides & Chemicals Ltd is experiencing a decline in its stock price, currently at Rs 1,046.40, which represents a decrease of Rs 74.35 or 6.63%. Today's price summary indicates that the stock has underperformed its sector by 6.68%, reaching an intraday low of Rs 1,013.05, reflecting a drop of 9.61%. Despite this decline, the stock has shown positive performance over the past month with an increase of 8.46%, and it has significantly outperformed the benchmark Sensex over longer periods, including a 53.10% return over the last year. The company has demonstrated strong financial health with a low Debt to EBITDA ratio and consistent growth in operating profit, which has contributed to its positive long-term outlook.
In the broader market context, the stock's short-term performance has been notably weaker compared to the Sensex, which has remained relatively flat with a change of -0.03% over the past week. While Pondy Oxides has shown impressive returns over the longer term, the current volatility and significant drop today may be attributed to its high valuation relative to peers, as indicated by its expensive ROCE and premium trading status. This combination of factors suggests that while the company has strong fundamentals, the market's reaction may be influenced by profit-taking or concerns over valuation, leading to the recent price decline.