Why is Sonata Software falling/rising?

As of 22-Jul, Sonata Software Ltd. is experiencing a decline in its stock price, currently at 430.85, which reflects a decrease of 7.65 or 1.74%. The stock has underperformed its sector by 1.52% today, touching an intraday low of Rs 427.6, which is a drop of 2.49%. Over the past week, the stock has decreased by 1.41%, while it has shown a more positive performance over the past month with an increase of 8.02%. However, year-to-date, the stock has fallen significantly by 28.31%. Despite its strong long-term fundamentals, including a healthy average Return on Equity (ROE) of 31.04% and a low Debt to Equity ratio, the stock's recent performance has been negatively impacted by a 12.1% decline in profits over the past year, contributing to its current valuation challenges.
In the broader market context, the Sensex has only decreased by 0.47% over the past week, indicating that Sonata Software's short-term performance is lagging behind the benchmark. The stock's liquidity remains adequate, but there has been a notable decline in investor participation, with delivery volume falling by 42.18% against the 5-day average. This lack of engagement may further pressure the stock price, especially as institutional holdings are relatively high at 35.24%, suggesting that these investors are closely monitoring the company's fundamentals. Overall, while the stock has strong long-term potential, its recent price decline reflects immediate concerns about profitability and market participation.