Why is Eimco Elecon(I) falling/rising?

As of 02-Jul, Eimco Elecon (India) Ltd is experiencing a decline in its stock price, currently at Rs 2,592.05, which reflects a decrease of Rs 72.95 or 2.74%. Today's price summary indicates that the stock has underperformed its sector by 2.87% and has fallen after two consecutive days of gains, touching an intraday low of Rs 2,584.95. Despite this decline, the stock has shown strong performance over the past week, with a return of +5.70%, and a significant year-to-date increase of +26.44%. The company benefits from a low debt-to-equity ratio and has demonstrated healthy long-term growth, with operating profit growing at an annual rate of 117.62%. Recent positive financial results further support the stock's potential, although the current price movement suggests a temporary setback.
In the broader market context, Eimco Elecon's recent performance contrasts with the Sensex, which has only increased by 0.79% over the past week. This indicates that while the stock has been performing well relative to the benchmark in the longer term, it is currently facing a pullback. The stock's liquidity remains adequate, with a notable increase in delivery volume, suggesting ongoing investor interest despite the recent price drop. Overall, while the stock has shown impressive returns over various periods, the current decline may be attributed to a natural correction after a strong upward trend, compounded by short-term market fluctuations.