Why is Primo Chemicals falling/rising?

As of 07-Jul, Primo Chemicals Ltd is experiencing a decline in its stock price, currently at 26.74, which reflects a decrease of 0.91 or 3.29%. Today's price summary indicates that the stock has underperformed its sector by 3.04% and has fallen after two consecutive days of gains. Despite this recent downturn, the stock has shown a positive performance over the past week and month, with returns of 3.60% and 8.26%, respectively. However, the stock's year-to-date performance remains significantly negative at -27.96%, and it has underperformed the benchmark Sensex over the past year and three years. The company has reported strong operating profit growth and positive results for the last three quarters, which may suggest underlying strength despite the current price drop.
In the broader market context, while the stock has underperformed the Sensex in the short term, it has shown resilience with rising investor participation, as evidenced by a significant increase in delivery volume. The stock's liquidity is adequate for trading, which may help stabilize its price. Although the stock is trading at a discount compared to its peers, the overall negative returns over the past year and three years indicate a challenging environment for investors. The company's attractive valuation metrics, such as a PEG ratio of 1.6 and a high operating profit to interest ratio, suggest potential for recovery, but the recent price decline reflects market sentiment that may be cautious given the stock's historical performance.