Why is Royal Orch.Hotel falling/rising?

As of 25-Jul, Royal Orchid Hotels Ltd is experiencing a decline in its stock price, currently at Rs 422.45, which reflects a decrease of Rs 7.45 or 1.73%. The stock has been on a downward trend, having fallen for the last three days, resulting in a total decline of 3.63% during this period. Today's trading saw the stock reach an intraday low of Rs 418.5, and there has been a significant drop in investor participation, with delivery volume decreasing by 66.06% compared to the five-day average. Despite this recent downturn, the stock has shown strong performance over the longer term, with a 21.88% return over the past year and a remarkable 151.53% increase over the last three years. However, it is important to note that profits have decreased by 2.6% during the same period, which may be contributing to the current price movement.
In the broader market context, the stock's short-term performance has been weaker than the benchmark, as it has declined by 1.27% over the past week compared to a smaller drop of 0.36% in the Sensex. While Royal Orchid Hotels has outperformed the benchmark indices over the longer term, the recent consecutive falls and declining investor interest may be causing concern among investors. The stock is currently trading at a discount compared to its peers' average historical valuations, which could indicate an attractive entry point for some investors, but the recent profit decline may be weighing on sentiment. Overall, the combination of short-term price declines and reduced trading activity suggests a cautious outlook in the immediate term.