Why is Sai Life falling/rising?

As of 09-Jul, Sai Life Sciences Ltd is experiencing a decline in its stock price, currently at 778.40, which reflects a decrease of 7.6 points or 0.97%. The stock has underperformed its sector today by 1.17% and has been on a consecutive downward trend for the last two days, accumulating a total drop of 1.84%. Despite a positive long-term growth outlook, with operating profit increasing at an annual rate of 87.31%, the stock's recent performance has been hindered by a significant drop in investor participation, as evidenced by a 70.78% decrease in delivery volume compared to the five-day average. Additionally, while the company has a strong ability to service debt and high institutional holdings, the stock's valuation remains a concern, with a Price to Book Value of 7.5 and a Return on Equity of 8, suggesting it may be considered expensive relative to its earnings growth.
In the broader market context, Sai Life's short-term performance has been less favorable compared to the benchmark, as it has recorded a 1.34% decline over the past week while the Sensex has increased by 0.15%. This underperformance is compounded by the stock's lack of momentum in the face of a generally positive market environment, where the Sensex has shown a year-to-date gain of 6.91%. The combination of declining investor interest and a high valuation relative to its earnings growth may be contributing to the stock's downward trajectory, despite the company's strong fundamentals and growth potential.