Why is Caplin Point Lab falling/rising?

As of 19-Sep, Caplin Point Laboratories Ltd is experiencing a price increase, currently at 2,344.60, reflecting a rise of 29.3 or 1.27%. The stock has outperformed the sector today by 1%, and it is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has gained 4.64%, and in the last month, it has risen by 9.95%. Despite a year-to-date decline of 6.28%, the stock has shown strong performance over the past year with a return of 22.14%. Positive factors contributing to this rise include high management efficiency indicated by a return on equity (ROE) of 19.84%, a low debt-to-equity ratio, and consistent positive results over the last 12 quarters. Additionally, institutional investors have increased their stake, suggesting growing confidence in the company's fundamentals.
In the broader market context, Caplin Point Laboratories Ltd has significantly outperformed the Sensex, which has only increased by 0.88% over the past week. While the stock's short-term performance is strong, it is important to note that its valuation appears high with a price-to-book value of 6.2, which may raise concerns among some investors. The stock's PEG ratio of 1.7 indicates that while it has generated substantial returns, its profit growth has not kept pace with its price increase, suggesting potential overvaluation. Overall, the combination of strong recent performance, institutional interest, and solid financial results supports the stock's upward movement, despite some valuation concerns.