Why is Sonata Software falling/rising?

As of 12-Aug, Sonata Software Ltd. is experiencing a significant rise in its stock price, currently at Rs 373.20, reflecting an increase of Rs 43.2 or 13.09%. Today's price summary indicates that the stock has outperformed its sector by 12.81% and has shown a trend reversal after two consecutive days of decline. The stock reached an intraday high of Rs 381.15, marking a 15.5% increase, and has traded within a wide range of Rs 51.9. Despite a recent decline of 13.22% over the past month, the stock has demonstrated strong long-term fundamental strength, with a healthy average Return on Equity (ROE) of 31.04% and a low Debt to Equity ratio. However, the company has faced challenges, including flat results in June and a decline in profits over the past year, which may contribute to its mixed performance.
In the broader market context, Sonata Software's short-term performance contrasts sharply with the benchmark, as it has gained 4.93% over the past week while the Sensex has declined by 0.59%. Despite its recent gains, the stock has underperformed the BSE500 over the last year, with a return of -38.35%. The high institutional holdings at 35.24% suggest that knowledgeable investors are backing the stock, which may provide some support for its price movement. However, the stock's expensive valuation, indicated by a Price to Book Value of 6.1, and its below-par performance in both the long term and near term raise concerns about its sustainability in the face of recent gains.