Why is Natco Pharma falling/rising?

As of 07-Aug, Natco Pharma Ltd. is experiencing a price increase, currently valued at 946.10, reflecting a rise of 28.4 or 3.09%. Today's performance indicates that the stock has outperformed its sector by 2.44% and has shown a trend reversal after two consecutive days of decline. The stock reached an intraday high of Rs 947.95, and while it is trading above its 5-day, 50-day, and 100-day moving averages, it remains below the 20-day and 200-day moving averages. Despite a recent decline in investor participation, as evidenced by a 26% drop in delivery volume, the stock's fundamentals remain strong, with a high return on equity (ROE) of 15.57% and a low debt-to-equity ratio, suggesting healthy long-term growth potential.
In the broader market context, Natco Pharma's short-term performance has been slightly worse than the benchmark, with a 1-week return of -0.80% compared to the Sensex's -0.69%. However, over the year, the stock has underperformed significantly, with a return of -33.10% against the Sensex's modest gain of 1.45%. Despite this, the company has shown impressive profit growth of 35.8% over the past year, leading to a favorable PEG ratio of 0.3, indicating that the stock is undervalued relative to its earnings growth. High institutional holdings at 21.33% further support the stock's stability, as these investors typically have better resources to assess the company's fundamentals.