Why is Sonata Software falling/rising?

As of 10-Sep, Sonata Software Ltd. is experiencing a price increase, with its current price at Rs 372.10, reflecting a change of 3.1 (0.84%) upward. The stock has shown a positive trend recently, gaining 4.38% over the last two days, although it underperformed its sector by 1.71% today. In the past week, Sonata has outperformed the Sensex with a return of +2.93%, and over the past month, it has risen by +8.53%. Despite these short-term gains, the stock has faced significant challenges, with a year-to-date decline of -38.09% and a one-year return of -44.25%. The company boasts strong long-term fundamentals, including a high return on equity (ROE) of 31.04% and healthy net sales growth, but it has also seen a decline in profits by -8.6% over the past year.
In the broader market context, the stock's recent performance contrasts with the Sensex, which has only increased by 1.06% over the past week and 1.96% over the past month. The IT software sector, where Sonata operates, has gained by 2.56%, indicating a generally positive environment for the industry. However, Sonata's long-term performance has been below par, with underperformance relative to the BSE500 over various time frames. High institutional holdings at 35.24% suggest confidence from larger investors, yet the stock's flat results in June and low return on capital employed (ROCE) raise concerns about its future performance. Overall, while Sonata Software is currently rising, its long-term outlook remains uncertain due to past underperformance and declining profits.