Why is ERIS Lifescience falling/rising?

As of 12-Jun, ERIS Lifesciences Ltd is experiencing a price increase, currently at Rs. 1,790.25, reflecting a rise of Rs. 75.25 or 4.39%. The stock has recently hit a new 52-week and all-time high of Rs. 1,909.55, showcasing strong performance with a 9.56% gain over the last four days. It has outperformed its sector by 4.49% today and is trading above all key moving averages. The company has demonstrated high management efficiency with a return on capital employed (ROCE) of 17.80% and a low debt to EBITDA ratio of 1.15 times, indicating a strong ability to service debt. However, there are concerns regarding its long-term growth, as operating profit has only grown at an annual rate of 17.17% over the last five years, and profits have decreased by 10.1% over the past year.
In the broader market context, ERIS Lifesciences has significantly outperformed the benchmark Sensex, with a 1-week return of 8.50% compared to the Sensex's 0.31%, and a 1-month return of 27.69% against a decline of 0.90% for the index. This strong performance is further supported by high institutional holdings at 26.49%, which typically indicates confidence from more resourceful investors. Despite the positive short-term momentum, the stock's valuation appears expensive with a 5.2 enterprise value to capital employed ratio, suggesting that while the stock is currently rising, there are underlying risks that could affect its long-term performance.