Why is Go Digit General falling/rising?

As of 25-Aug, Go Digit General Insurance Ltd is experiencing a price increase, currently trading at 370.50, which reflects a change of 3.4 or 0.93% upward. The stock has shown strong performance in recent periods, with a 1-week return of 1.91% and a 1-month return of 6.37%, significantly outperforming the Sensex, which has only returned 0.45% and 0.21% respectively in the same time frames. Today's performance indicates that the stock has outperformed its sector by 1.12%. Additionally, it is trading above all its moving averages, which suggests a positive trend. However, there is a noted decline in investor participation, with delivery volume falling by 51.62% compared to the 5-day average, which could indicate some caution among investors. The company's strong fundamentals, highlighted by a 50.90% CAGR growth in operating profits and consistent positive results over the last five quarters, support the stock's upward movement despite its high valuation concerns.
In the broader market context, Go Digit's recent performance has been notably stronger than the benchmark, as evidenced by its 1-week and 1-month returns compared to the Sensex. While the stock has generated a modest 0.90% return over the past year, it has achieved significant profit growth of 134%, which may attract institutional investors, who currently hold 22.67% of the stock. This high level of institutional ownership suggests confidence in the company's long-term prospects, despite the stock's expensive valuation indicated by a Price to Book Value of 7.5. Overall, the combination of strong growth metrics and institutional backing contributes positively to the stock's recent rise, even as some risks related to valuation and declining trading volume persist.