Why is Sai Life falling/rising?

As of 06-Aug, Sai Life Sciences Ltd is currently priced at 790.00, reflecting a decrease of 4.25 points or 0.54%. The stock has been experiencing a decline, having fallen consecutively for the last two days, resulting in a total drop of 1.85% during this period. Despite opening the day with a gain of 6.04% and reaching an intraday high of Rs 842.25, the stock's overall performance has been impacted by high volatility, with a significant portion of trading volume occurring closer to its low price. In terms of returns, the stock has underperformed the benchmark Sensex over the past week, with a decline of 6.50% compared to the Sensex's drop of 1.15%. However, it has shown a positive year-to-date return of 5.16%, outperforming the Sensex's 3.08% gain.
In the broader market context, the Pharmaceuticals & Drugs sector has also faced challenges, declining by 2.17%. While Sai Life Sciences has a strong ability to service debt and healthy long-term growth, indicated by a significant increase in operating profit, it is facing pressure due to its high valuation metrics, such as a Price to Book Value of 7.6 and a relatively low return on equity of 8. Additionally, the stock's institutional holdings have increased, suggesting confidence from larger investors, but this has not translated into short-term price stability. Overall, the combination of sector weakness, high volatility, and valuation concerns appears to be contributing to the stock's recent price decline.