Why is Thermax falling/rising?

As of 23-Jul, Thermax Ltd. is experiencing a decline in its stock price, currently at Rs 3,861.20, which reflects a decrease of Rs 78.8 or 2.0%. The stock has underperformed its sector by 0.51% today, having touched an intraday low of Rs 3,841.85. In terms of recent performance, the stock has shown a 5.86% increase over the past week and a 10.85% increase over the past month. However, it has a year-to-date decline of 5.17% and a significant drop of 21.54% over the past year. The company has a low Debt to Equity ratio and healthy long-term growth, but it also faces challenges such as flat results in March 2025 and a very expensive valuation relative to its peers, which may contribute to the current price movement.
In the broader market context, while the Sensex has only increased by 0.11% over the past week, Thermax's short-term performance has outpaced this benchmark. However, the stock's long-term performance has been disappointing, with a 21.54% decline over the past year compared to a 2.86% increase in the Sensex. The falling investor participation, indicated by a 57.71% drop in delivery volume, suggests a lack of confidence among investors, which could further pressure the stock price. Overall, despite some positive factors such as high institutional holdings and strong operating profit growth, the combination of underperformance against the market and high valuation concerns appears to be driving the stock lower.