Why is Rajasthan Gases falling/rising?

As of 06-Oct, Rajasthan Gases Ltd is experiencing a significant rise in its stock price, currently at Rs 66.18, reflecting an increase of 6.0 (9.97%). The stock has been on an upward trajectory, gaining 82.72% over the last seven days and outperforming its sector by 10.44% today. It opened with a gain of 6.33% and reached an intraday high of Rs 66.19. The stock has consistently outperformed the benchmark indices, showing impressive returns of 85.12% over the past year and 744.13% over the last three years. Positive factors contributing to this rise include a remarkable growth in net profit of 1332.84% and strong quarterly results, alongside high returns on capital employed and net sales.
In the broader market context, while Rajasthan Gases has shown exceptional short-term performance, the Sensex has only increased by 1.77% over the past week. This stark contrast highlights the stock's strong momentum relative to the market. However, it is worth noting that despite its impressive returns, the company has a high valuation with a Price to Book Value of 14.2, and domestic mutual funds hold no stake, which may indicate some caution among institutional investors. Overall, the stock's recent rise can be attributed to strong financial performance and investor interest, despite some underlying concerns regarding valuation and institutional confidence.