Why is Elgi Equipments falling/rising?

As of 30-Jul, Elgi Equipments Ltd's stock price is currently at 568.00, reflecting an increase of 5.8, or 1.03%. The stock has shown a positive trend recently, gaining 3.4% over the last two days, although it has underperformed in the short term with a 3.73% decline over the past week. The stock is trading above its 20-day, 50-day, 100-day, and 200-day moving averages, indicating a generally positive trend. However, there has been a notable decrease in investor participation, with delivery volume falling by 54.22% compared to the five-day average. Despite these mixed signals, the company boasts strong financial metrics, including a high return on capital employed (ROCE) of 21.98% and a low debt to EBITDA ratio of 0.44, which contribute to its healthy long-term growth prospects.
In the broader market context, Elgi Equipments has underperformed relative to the benchmark, with a 1-year return of -19.93% compared to the Sensex's negligible change of +0.03%. While the stock has shown resilience in the short term, the significant decline over the past year raises concerns about its valuation, which is considered expensive with a price to book value of 9.6. The stock's performance relative to the market indicates that, despite its strong fundamentals and high institutional holdings, it has struggled to attract investor confidence, particularly in light of its recent underperformance compared to the broader market.