Why is Shakti Pumps falling/rising?

As of 24-Sep, Shakti Pumps (India) Ltd is experiencing a decline in its stock price, currently at Rs 851.25, which reflects a decrease of Rs 15.4 or 1.78%. The stock has underperformed its sector by 1.54% today and has been on a consecutive downward trend for the last two days, with a total drop of 2.93% during this period. Additionally, the stock touched an intraday low of Rs 847, indicating some selling pressure. In terms of performance, while the stock has generated a return of 22.42% over the past year, it has faced a significant year-to-date decline of 20.00%. The company has demonstrated strong management efficiency and growth metrics, with a high return on equity (ROE) of 19.67% and impressive net sales growth, but its high valuation relative to peers and a low delivery volume suggest some investor caution.
In the broader market context, Shakti Pumps has underperformed the Sensex over the past week, with a decline of 3.10% compared to the benchmark's drop of 1.18%. While the stock has shown strong long-term performance, including a remarkable 906.01% increase over the last three years, the recent short-term trends indicate a struggle against market pressures. The stock's current valuation, described as very expensive with a price-to-book ratio of 9, may be contributing to investor hesitance, especially in light of its recent profit growth outpacing stock performance. This combination of high valuation concerns and recent underperformance against the benchmark may be influencing the stock's current downward trajectory.