Why is Elgi Equipments falling/rising?

As of 31-Jul, Elgi Equipments Ltd is currently priced at 569.20, reflecting a rise of 1.2 (0.21%). The stock has shown a positive trend recently, gaining 3.62% over the last three days, although it opened with a loss of 3.42% today and touched an intraday low of Rs 548.55. In terms of performance against benchmarks, the stock has underperformed over the past week with a decline of 4.01%, while it has outperformed the sector today by 0.41%. Despite a significant drop in delivery volume, the company maintains a strong financial position with high management efficiency, a low debt to EBITDA ratio, and substantial cash reserves, which could support its stock price.
Broader market context indicates that while Elgi Equipments has experienced a decline of 17.77% over the past year, the broader market, represented by the Sensex, has only fallen by 0.68%. This stark contrast highlights the stock's underperformance relative to the market. Although the company has a high institutional holding of 32.84%, indicating confidence from larger investors, its valuation appears expensive with a Price to Book Value of 9.7. The stock's recent gains may be influenced by its strong operational metrics, but the overall negative sentiment from its long-term performance and high PEG ratio suggests caution among investors.