Why is Times Guaranty falling/rising?

As of 11-Jun, Times Guaranty Ltd is experiencing a significant rise in its stock price, currently at Rs 183.50, reflecting an increase of Rs 18.85 or 11.45%. The stock opened with a notable gain of 14.76% today and reached an intraday high of Rs 188.95. Over the past week, the stock has outperformed the benchmark Sensex, with a return of 13.34% compared to the Sensex's 1.87%. Additionally, the stock has shown consistent performance over longer periods, generating a remarkable 63.40% return over the last year and 285.10% over the last three years. However, there are concerns regarding falling investor participation, as the delivery volume has decreased by 42.1% against the five-day average. While institutional investors have increased their stake, the company's long-term fundamentals, such as a low return on equity of 6.13% and modest net sales growth, raise questions about its valuation.
In the broader market context, Times Guaranty Ltd's recent performance has significantly outpaced the Sensex, which has only increased by 1.87% over the past week. This strong performance may be attributed to increasing participation by institutional investors, who have a better capability to analyze the company's fundamentals. Despite the positive short-term momentum, the stock's high valuation relative to its peers and the weak long-term growth prospects could temper future investor enthusiasm. Overall, while the stock is currently rising, the mixed signals regarding its long-term fundamentals and declining retail participation suggest a cautious outlook moving forward.