Why is Coforge falling/rising?

As of 08-Jul, Coforge Ltd is experiencing a slight increase in its stock price, currently at Rs 1,945.00, reflecting a change of 3.2 (0.16%) upward. The stock has shown strong performance over various periods, with a 1-week return of +1.24% and a remarkable 66.20% increase over the past year. Today's price summary indicates that the stock is trading close to its 52-week high, just 3.01% away from Rs 2003.59, and it has consistently traded above its moving averages across multiple time frames. However, there is a noted decline in investor participation, with delivery volume dropping by 40.05% compared to the 5-day average. The company's strong fundamentals, including a healthy return on equity of 20.35% and consistent growth in net sales, support its positive price movement, despite concerns over its high valuation relative to peers.
In the broader market context, Coforge's recent performance has outpaced the benchmark, with a 1-month return of +9.58% compared to the Sensex's +1.85%. This market-beating performance is indicative of strong investor confidence, particularly given the high institutional holdings at 90.15%, which suggest that knowledgeable investors are backing the stock. However, the stock's valuation remains a concern, as it trades at a premium with a price-to-book value of 10.2, and its profit growth has lagged behind its stock price increase, raising questions about sustainability. Overall, while the stock is rising due to strong fundamentals and positive market sentiment, the high valuation and declining investor participation could pose risks moving forward.