Why is Divi's Lab. falling/rising?

As of 04-Jul, Divis Laboratories Ltd is experiencing a price increase, currently at 6,924.55, reflecting a change of 51.75 (0.75%) upward. The stock has been performing well, gaining 5.57% over the last eight days and achieving a new 52-week high of Rs. 6940.95 today. In terms of returns, the stock has outperformed the benchmark Sensex over various periods, with a 52.44% increase over the past year compared to the Sensex's 4.23%. The company has demonstrated strong financial performance, with high management efficiency indicated by a return on equity (ROE) of 17.46%, low debt-to-equity ratio, and positive results for the last three consecutive quarters, contributing to investor confidence and driving the stock price higher.
In the broader market context, Divis Laboratories Ltd's short-term return of +3.68% over the past week stands in stark contrast to the Sensex, which has declined by 0.74%. This indicates that the stock is not only performing well on its own but is also gaining traction against a backdrop of a struggling market. The high institutional holdings at 38.72% suggest that knowledgeable investors are backing the stock, further supporting its price rise. However, there are concerns regarding its long-term growth potential, as operating profit growth has been modest at 9.49% annually over the last five years, and the stock is considered expensive relative to its peers. Despite these risks, the current momentum and recent performance suggest a positive outlook for Divis Laboratories Ltd.