Why is Shakti Pumps falling/rising?

As of 17-Sep, Shakti Pumps (India) Ltd is currently priced at 878.50, reflecting a decrease of 8.15 points or 0.92%. The stock has recently underperformed its sector by 2.63% and has experienced a trend reversal, falling after three consecutive days of gains. Despite a strong performance over the past year with a return of 22.38%, the stock has shown a year-to-date decline of 17.44%. Additionally, the stock's delivery volume has decreased significantly, falling by 36.25% compared to the 5-day average, indicating a drop in investor participation. While the company boasts high management efficiency and consistent growth in net sales and operating profit, its high valuation and expensive price-to-book ratio may be contributing to the current price decline.
In the broader market context, Shakti Pumps has outperformed the Sensex over the past week and month, with returns of 7.84% and 1.60%, respectively, compared to the Sensex's 1.56% and 2.60%. However, the stock's year-to-date performance contrasts sharply with the benchmark's positive return of 5.83%. The recent price drop may reflect market corrections or profit-taking after a strong performance, despite the company's solid fundamentals and consistent returns over the last three years. The high valuation metrics, such as a price-to-book value of 9.3, suggest that the stock may be perceived as overvalued, which could be influencing investor sentiment negatively.