Why is Pondy Oxides falling/rising?

As of 04-Sep, Pondy Oxides & Chemicals Ltd is experiencing a decline in its stock price, currently at Rs 1,138.85, reflecting a decrease of Rs 23.15 or 1.99%. Today's price summary indicates that the stock has underperformed its sector by 1.39% and has fallen after three consecutive days of gains. The stock reached an intraday high of Rs 1,191.25 but also saw a low of Rs 1,127.15, suggesting volatility within the trading day. Despite this decline, the stock has shown strong performance over the longer term, with a year-to-date increase of 33.20% and a remarkable 383.67% rise over the past three years. Positive factors contributing to the stock's overall strength include a low Debt to EBITDA ratio, healthy growth in operating profit, and consistent positive results over the last five quarters. However, the stock is considered expensive relative to its peers, which may be a concern for some investors.
In the broader market context, Pondy Oxides has outperformed the benchmark Sensex in the short term, with a 4.79% increase over the past week compared to the Sensex's 0.80% rise. However, the stock's recent decline may reflect a market correction after its strong performance, as well as the high valuation concerns highlighted by its expensive PEG ratio of 1.1. While the stock has generated a modest return of 4.77% over the past year, the significant growth in profits may not be fully reflected in its current price, leading to potential investor caution. Overall, while the stock has shown resilience and strong fundamentals, the recent price movement suggests a reaction to both profit-taking and valuation concerns in the current market environment.