Why is Ajanta Pharma falling/rising?

As of 19-Aug, Ajanta Pharma Ltd. is experiencing a price increase, currently at Rs 2,729.00, reflecting a rise of 38.0 points or 1.41%. The stock has shown a positive trend recently, gaining for three consecutive days with a total return of 2.27% during this period. Despite touching an intraday low of Rs 2,589.7, the stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a strong upward momentum. However, there has been a decline in investor participation, with delivery volume dropping by 29.6% compared to the 5-day average. The company benefits from high management efficiency, evidenced by a return on equity (ROE) of 22.06% and a low debt-to-equity ratio, which supports its stable financial position.
In the broader market context, Ajanta Pharma's short-term performance of +1.07% over the past week is lagging behind the Sensex, which has increased by 1.76%. Year-to-date, the stock has underperformed significantly, with a decline of 7.36% compared to the Sensex's gain of 4.49%. Despite these challenges, the company has reported strong financial results, including the highest net sales and profit before depreciation and interest in the last quarter, which may contribute to positive sentiment among institutional investors, who hold 26.36% of the stock. This institutional backing suggests a level of confidence in the company's fundamentals, even as the stock faces broader market pressures.