Why is Sarda Energy falling/rising?

As of 03-Sep, Sarda Energy & Minerals Ltd is experiencing a price increase, currently at Rs 587.10, reflecting a rise of 10.1 points or 1.75%. The stock has shown strong performance over the past month, with a notable increase of 33.66%, despite a slight decline of 0.88% over the past week. Today's trading saw the stock reach an intraday high of Rs 593.9, although it underperformed its sector by 1.5%. The company has demonstrated solid financial health, with a high return on capital employed (ROCE) of 18.64% and a low debt to EBITDA ratio of 1.06 times, contributing to positive investor sentiment. Additionally, the company has reported significant growth in net sales and operating profit, further bolstering its appeal to investors.
In the broader market context, while Sarda Energy has outperformed the Sensex over various periods, including a remarkable 560.40% increase over the last three years, it has faced some challenges in the short term, as indicated by its recent underperformance relative to the sector. The stock's strong long-term growth prospects, evidenced by a net profit increase of 117.52% and consistent returns over the past year, contrast with its expensive valuation metrics, which may temper some investor enthusiasm. Overall, the combination of robust financial results and rising investor participation suggests a positive outlook for the stock, despite some recent fluctuations in performance relative to the broader market.