Why is Natco Pharma falling/rising?

As of 04-Aug, Natco Pharma Ltd. has seen its stock price rise to 935.30, reflecting an increase of 4.25 or 0.46%. This uptick comes after two consecutive days of decline, indicating a potential trend reversal. The stock is currently trading above its 50-day and 100-day moving averages but below its 5-day, 20-day, and 200-day moving averages. Despite this positive movement today, the stock has underperformed over the past week and month, with returns of -0.70% and -6.31%, respectively. However, the company exhibits strong fundamentals, including a high return on equity (ROE) of 15.57%, a low debt-to-equity ratio, and healthy long-term growth in operating profit at an annual rate of 32.35%. The stock is also trading at a discount compared to its peers, which may attract investor interest.
In the broader market context, the Sensex has shown a slight positive return of +0.16% over the past week, contrasting with Natco Pharma's decline during the same period. While the stock has struggled year-to-date with a return of -32.57%, it has maintained high institutional holdings at 21.33%, suggesting confidence from larger investors. The company's profits have increased by 35.8% over the past year despite the stock's significant decline, indicating that the market may be undervaluing the company. This combination of strong fundamentals and recent price movement may suggest that investors are beginning to recognize the stock's potential, contributing to its rise today.