Why is Pondy Oxides falling/rising?

As of 09-Sep, Pondy Oxides & Chemicals Ltd is experiencing a decline in its stock price, currently at Rs 1,221.95, reflecting a decrease of Rs 56.7 or 4.43%. Today's price summary indicates that the stock has underperformed its sector by 4.37% and has fallen after two consecutive days of gains, touching an intraday low of Rs 1,217.3. Despite this decline, the stock has shown strong performance over the past week and month, with returns of 12.96% and 14.12%, respectively. The company has demonstrated a solid ability to service debt, with a low Debt to EBITDA ratio of 0.86 times, and has reported healthy long-term growth, including a 31.47% annual increase in operating profit. However, the stock is considered expensive with a high valuation compared to its peers, which may be contributing to the recent price drop.
In the broader market context, while Pondy Oxides has outperformed the Sensex in the long term, its recent short-term performance has been less favorable, particularly today. The Sensex has only increased by 1.18% over the past week, indicating that the stock's decline is not entirely reflective of broader market trends. The stock's liquidity remains adequate, with a delivery volume increase of 54.96% against the five-day average, suggesting continued investor interest despite the current price drop. Overall, while the company has shown strong fundamentals and growth, its high valuation and recent price movements may be causing some investors to reassess their positions.