Why is Sai Life falling/rising?

As of 18-Jul, Sai Life Sciences Ltd is experiencing a decline in its stock price, currently at Rs 815.00, which reflects a decrease of Rs 7.65 or 0.93%. Despite this recent downturn, the stock has shown positive performance over the past week and month, with returns of 4.29% and 10.38%, respectively. However, today's performance indicates it has underperformed its sector by 0.38%, and it has fallen after two consecutive days of gains. Additionally, the stock is trading above its moving averages, but there has been a notable drop in investor participation, with delivery volume decreasing by 53.5% compared to the five-day average. The company maintains a strong financial position with a low Debt to EBITDA ratio and healthy operating profit growth, but it faces valuation concerns with a high Price to Book Value ratio and a relatively low return on equity.
In the broader market context, while Sai Life has outperformed the Sensex over the past week and month, the benchmark index has shown a slight decline of 0.90% in the last week. The stock's year-to-date return of 8.49% also surpasses the Sensex's 4.63%, indicating a stronger performance relative to the market. However, the recent price drop may reflect investor caution due to the stock's high valuation metrics despite its solid fundamentals. The increase in institutional holdings suggests confidence from larger investors, but the overall market sentiment may be tempered by the stock's recent price action and declining trading volume.