Why is Elecon Engg.Co falling/rising?

As of 28-Aug, Elecon Engineering Company Ltd's stock price is currently at 540.95, reflecting a decrease of 13.45 points or 2.43%. The stock has underperformed its sector today by 1.29% and has experienced a consecutive decline over the last two days, resulting in a total drop of 5.71%. It reached an intraday low of Rs 536, indicating a significant downward movement. The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a bearish trend. Despite a high management efficiency with a return on equity (ROE) of 16.24% and a low debt-to-equity ratio of 0.05, the stock's valuation appears expensive with a price-to-book value of 6.1, which may be contributing to the recent price decline.
In the broader market context, Elecon Engineering's stock has underperformed the benchmark Sensex, which has seen a decline of 2.34% over the past week compared to the stock's 4.26% drop. Over the past month, the stock has fallen by 4.58%, while the Sensex has only decreased by 1.00%. This trend indicates that the stock is not only struggling in isolation but is also lagging behind the overall market performance. The company's recent positive financial results, including significant growth in operating profit and net sales, have not translated into stock price appreciation, as evidenced by the negative returns over the past year, which stand at -12.19%. This disconnect between strong operational performance and stock price movement may be causing investor concern, leading to the current downward trend.