Why is Radico Khaitan falling/rising?

As of 22-Aug, Radico Khaitan Ltd. is experiencing a slight decline in its stock price, currently at 2,888.25, reflecting a decrease of 6.65 points or 0.23%. Despite this recent drop, the stock has shown strong performance over the past week, with a return of 1.49%, and has outperformed the Sensex, which gained only 0.88%. The stock is also close to its 52-week high, just 1.67% away from Rs 2,941.4. However, the stock has seen a trend reversal after two consecutive days of gains, and there has been a notable decrease in investor participation, with delivery volume falling by 7% against the 5-day average. The company maintains a strong financial position, highlighted by a low Debt to EBITDA ratio and consistent growth in net sales and profits, which supports its valuation despite being considered expensive relative to its return on capital employed.
In the broader market context, Radico Khaitan's recent performance contrasts with the Sensex, which has shown a decline of 1.07% over the past month, while Radico has increased by 4.72%. This indicates that Radico Khaitan is maintaining investor interest despite the recent price drop. The stock's high institutional holdings suggest confidence from more sophisticated investors, which may provide stability. However, the stock's valuation concerns, indicated by a high PEG ratio and expensive valuation metrics, could be contributing to the recent price decline. Overall, while the stock has demonstrated strong long-term growth and consistent returns, the recent price movement reflects a combination of profit-taking after gains and concerns over valuation.