Why is Eiko Lifescience falling/rising?

As of 03-Jul, Eiko Lifesciences Ltd is experiencing a price increase, currently at Rs 64.80, reflecting a rise of Rs 6.8 or 11.72%. The stock has shown strong performance today, outperforming its sector by 12.24% and achieving a consecutive gain over the last two days with a total return of 30.09%. It opened with a gain of 3.88% and reached an intraday high of Rs 65.9. The stock has been trading above its moving averages and has seen a significant increase in investor participation, with delivery volume rising by 267.58% compared to the 5-day average. Additionally, the promoters have increased their stake by 4.96%, indicating confidence in the company's future, which has likely contributed to the stock's upward movement.
In the broader market context, Eiko Lifesciences has outperformed the benchmark Sensex over the past week, with a return of 29.26% compared to the benchmark's decline of 0.62%. While the stock has shown impressive short-term performance, it is important to note that its long-term fundamentals are weaker, with an average Return on Equity (ROE) of 2.82% and flat results in March 2025. Despite generating a return of 33.97% over the past year, the company's profits have risen by 73%, suggesting a high valuation relative to its peers. This combination of strong short-term performance and concerns about long-term fundamentals may create a complex outlook for investors.