Why is Pondy Oxides falling/rising?

As of 27-Oct, Pondy Oxides & Chemicals Ltd is experiencing a decline in its stock price, currently at 1,364.50, reflecting a decrease of 10.8 points or 0.79%. The stock has underperformed its sector by 0.73% today and has been on a downward trend for the last three days, accumulating a total loss of 5.9% during this period. Despite this recent downturn, the stock has shown strong performance over the longer term, with a 59.59% increase year-to-date and a remarkable 532.74% rise over the past three years. The company has demonstrated solid financial health, evidenced by a low Debt to EBITDA ratio of 0.86 times and consistent positive results over the last six quarters, including a 34.56% growth in net profit. However, the stock's valuation appears expensive with a ROCE of 13.3 and a high enterprise value to capital employed ratio, which may be contributing to investor caution.
In the broader market context, Pondy Oxides' recent performance contrasts with the Sensex, which has gained 0.49% over the past week. While the stock has outperformed the benchmark over the longer term, its short-term decline indicates a potential disconnect with broader market trends. Additionally, a significant drop in investor participation, with delivery volume falling by 63.92% against the five-day average, suggests waning interest among retail investors, even as institutional investors have increased their stakes. This mixed sentiment may be influencing the stock's current price movement, as it navigates both strong fundamentals and valuation concerns.