Shares of Bumitama Agri Ltd (SGX:P8Z) plummeted 3.73% during Wednesday's trading session, continuing a downward trend that has seen the stock lose 10% over the past month. This latest drop comes despite the company's strong long-term performance, highlighting growing investor concerns about its current growth trajectory.

The palm oil producer has delivered impressive returns to shareholders over the past five years, with a total shareholder return of 165% including dividends. However, recent market sentiment appears to be turning cautious. The company's earnings per share (EPS) growth of 27% per year over the last five years has outpaced its share price growth, resulting in a relatively low P/E ratio of 7.62.

Analysts suggest that the recent sell-off might be attributed to concerns about Bumitama Agri's ability to maintain its strong growth rate in the face of challenging market conditions. While the company has rewarded shareholders with an 18% total return over the past year, investors seem to be reassessing the stock's valuation and future prospects, leading to the current downward pressure on the share price.