Why is Swaraj Engines falling/rising?

As of 18-Jul, Swaraj Engines Ltd is experiencing a decline in its stock price, currently at Rs 4,410.00, reflecting a decrease of Rs 20.0 or 0.45%. The stock has been on a downward trend for the past three days, with a total decline of 3.99% during this period. Despite this recent fall, the stock has shown strong performance over the longer term, with a year-to-date return of 49.05% and a remarkable 200.10% increase over the past three years. However, today's trading activity indicates a decrease in investor participation, with delivery volume falling by 19.76% compared to the five-day average, which may contribute to the current price drop. The company has maintained high management efficiency, evidenced by a return on equity (ROE) of 36.97% and consistent positive results over the last five quarters, which typically supports a bullish outlook.
In the broader market context, Swaraj Engines has outperformed the benchmark Sensex over various periods, including a 7.68% increase over the past week compared to a decline of 0.90% for the index. This strong relative performance suggests that the stock has been favored by investors despite its recent downturn. Nonetheless, the stock's valuation appears expensive, trading at a premium compared to its peers, which may be causing some investors to reassess their positions. The combination of high returns over the past year, alongside a PEG ratio of 1.3 and rising profits of 23.3%, indicates that while the company has strong fundamentals, its current valuation may be a concern for some investors, contributing to the recent price decline.