Why is Sobha falling/rising?

As of 01-Jul, Sobha Ltd. has experienced a price increase, currently trading at 1,492.30, reflecting a rise of 30.3 or 2.07%. The stock has shown positive momentum, gaining for the last two consecutive days with a total return of 2.56% during this period. Despite this recent uptick, the stock has underperformed in the short term, with a weekly return of -0.73% compared to the Sensex's +2.00%. Notably, the company has reported strong financial results, including an 88.38% growth in net profit and positive results for the last three consecutive quarters. However, concerns remain regarding its long-term fundamental strength, highlighted by a -26.50% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 3.36 times, which may weigh on investor sentiment.
In the broader market context, while Sobha Ltd. has outperformed its sector by 2.18% today, it has still lagged behind the Sensex over the past week and year, with a one-year return of -22.05% compared to the benchmark's +5.31%. The stock's liquidity remains adequate, but a significant drop in delivery volume by -28.21% against the five-day average indicates a potential decline in investor interest. Despite trading at a discount to its peers' historical valuations, the stock's expensive valuation, reflected in a Price to Book Value of 3.5, coupled with low profitability as indicated by a Return on Equity of 2.1, suggests that investors may be cautious about its future performance.