Why is Tera Software falling/rising?

As of 12-Aug, Tera Software Ltd's stock price is currently at Rs 288.45, reflecting an increase of Rs 5.65 or 2.0%. Today's price movement indicates a trend reversal, as the stock has gained after three consecutive days of decline. The stock has shown high volatility today, with an intraday volatility of 285.16%. Despite a recent downturn, Tera Software has outperformed its sector by 1.72% today. Over the past year, the stock has generated a remarkable return of 249.30%, supported by strong financial results, including record net sales and profits. However, it is important to note that the company has experienced a -5.50% CAGR growth in operating profits over the last five years, which raises concerns about its long-term fundamental strength.
In the broader market context, Tera Software's short-term performance has been notably better than the benchmark, with a 1-week return of -2.90% compared to the Sensex's -0.59%. While the stock has shown impressive long-term returns, outperforming the BSE500 over various periods, the recent decline in investor participation, evidenced by a 74.09% drop in delivery volume, may indicate waning interest. The stock is trading at a discount compared to its peers, which could attract investors looking for value; however, the low return on equity suggests that profitability per unit of shareholder funds remains a concern. Overall, while the stock is currently rising, the mixed signals from both its performance and fundamentals suggest a cautious outlook.