Why is Colab Platforms falling/rising?

As of 22-Jul, Colab Platforms Ltd is experiencing a price increase, currently at 48.53, reflecting a rise of 0.95 or 2.0%. The stock has shown strong performance recently, gaining 55.59% over the last 21 days and outperforming its sector by 2.21% today. Additionally, it has delivered impressive returns of 536.88% over the past year, significantly surpassing the market's return of 0.99%. Positive financial results, including the highest PAT of Rs 0.95 crore and increased net sales, have contributed to this upward trend. However, concerns about long-term fundamental strength are present, as indicated by a relatively low average Return on Equity (ROE) of 5.76% and a high Price to Book Value ratio of 45.6, suggesting the stock may be overvalued.
In the broader market context, Colab Platforms has outperformed the Sensex, which has seen a decline of 0.47% over the past week, while the stock itself has risen by 10.35% in the same period. This stark contrast highlights the stock's strong momentum relative to the market. Despite its impressive short-term performance, the lack of domestic mutual fund investment, which stands at 0%, raises questions about the stock's valuation and long-term prospects. This situation indicates that while the stock is currently rising, there are underlying concerns that could affect its future performance.