Why is Colab Platforms falling/rising?

As of 23-Jul, Colab Platforms Ltd is experiencing a price increase, currently at 49.50, which reflects a rise of 0.97 or 2.0%. The stock has shown strong performance, gaining 51.19% over the last 21 days and outperforming its sector by 1.46% today. In terms of returns, Colab Platforms has delivered an impressive 537.07% over the past year, significantly surpassing the market's average return of 1.79%. Positive financial results, including the highest quarterly profit after tax at Rs 0.95 cr and increased net sales, have contributed to this upward trend. However, the stock does face concerns regarding its long-term fundamental strength, with a relatively low return on equity of 5.76% and a high price-to-book value ratio of 46.5, indicating it may be overvalued compared to peers.
In the broader market context, Colab Platforms has outperformed the benchmark Sensex, which has only increased by 0.11% over the past week, while the stock itself has surged by 10.37% in the same period. This stark contrast highlights the stock's strong momentum in a relatively stable market environment. Despite its remarkable short-term gains, the lack of domestic mutual fund investment may suggest caution among institutional investors, potentially indicating concerns about the sustainability of its high valuation amidst its impressive returns.