Why is Eldeco Housing falling/rising?

As of 01-Sep, Eldeco Housing & Industries Ltd is currently priced at 734.15, reflecting an increase of 9.65 or 1.33%. Despite this uptick, the stock has been trading below its moving averages across various time frames, indicating a potential weakness in momentum. The stock has shown a mixed performance in the short term, with a 1-week return of +0.62%, but a 1-month return of -0.92%. Additionally, the company has faced significant challenges, including a decline in earnings per share (EPS) by -3.4% and negative results for the last nine consecutive quarters, which have contributed to a poor long-term growth outlook. The low debt-to-equity ratio may provide some comfort, but the overall financial health appears concerning, with a return on equity (ROE) of only 5.6 and a price-to-book value of 1.9, indicating an expensive valuation relative to peers.
In the broader market context, the stock has underperformed against the benchmark, with a year-to-date return of -15.93% compared to the Sensex's gain of +4.15%. This consistent underperformance over the past three years, coupled with a significant drop in investor participation, as evidenced by a 93.21% decline in delivery volume, suggests a lack of confidence among investors. The stock's performance today, while outperforming its sector by 0.31%, does not mitigate the broader trend of declining returns and investor sentiment. The absence of domestic mutual fund investment further highlights the market's cautious stance towards Eldeco Housing, indicating that institutional investors may not be comfortable with the current valuation or the company's business prospects.