Why is Natco Pharma falling/rising?

As of 29-Jul, Natco Pharma Ltd. is experiencing a price increase, currently at 959.35, which reflects a rise of 17.5 or 1.86%. The stock has shown a trend reversal, gaining after three consecutive days of decline. It outperformed its sector by 0.45% today and reached an intraday high of Rs 967.95. Despite this positive movement, the stock has a mixed performance over different periods, with a 1-week decline of 5.66% and a year-to-date drop of 30.83%. However, it has shown a strong 1-month return of 8.55%, indicating some recovery. The stock's management efficiency is notable, with a high return on equity (ROE) of 15.57% and a low debt-to-equity ratio, which supports its valuation as attractive compared to peers.
In the broader market context, while Natco Pharma's recent performance has been positive, it is essential to note that the benchmark Sensex has declined by 1.03% over the past week and 3.24% over the past month. This indicates that Natco Pharma is performing relatively better than the market in the short term. The stock's liquidity remains adequate for trading, although there has been a significant drop in delivery volume, suggesting a decrease in investor participation. Despite the challenges reflected in its year-to-date and one-year returns, the company's healthy long-term growth prospects, evidenced by a 35.8% increase in profits over the past year, contribute to a more favorable outlook for investors.