Why is Elgi Equipments falling/rising?

As of 23-Jul, Elgi Equipments Ltd is experiencing a price increase, currently at Rs 590.00, reflecting a rise of Rs 36.45 or 6.58%. The stock has shown strong performance today, outperforming its sector by 5.03% and achieving a consecutive gain over the last two days with a total increase of 6.9%. It reached an intraday high of Rs 596.15, and is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Despite this positive movement, there is a notable decline in investor participation, with delivery volume falling by 79.61% compared to the 5-day average. The company boasts high management efficiency, a strong ability to service debt, and healthy long-term growth metrics, which contribute positively to its recent stock performance.
In the broader market context, Elgi Equipments has outperformed the Sensex over the past week and month, with returns of 8.33% and 10.32% respectively, while the Sensex has only gained 0.11% and 1.01% in the same periods. However, the stock has underperformed over the past year, with a decline of 11.98% compared to the market's positive return of 2.86%. This underperformance, coupled with a high valuation indicated by a Price to Book Value of 10 and a PEG ratio of 4.4, suggests that while the stock is currently rising, it faces challenges in sustaining this momentum in the long term.