Why is Elgi Equipments falling/rising?

As of 05-Aug, Elgi Equipments Ltd is experiencing a price increase, currently at Rs 572.70, reflecting a rise of Rs 9.3 or 1.65%. The stock has shown positive momentum, gaining 2.62% over the last two days and outperforming its sector by 1.23% today. It has also touched an intraday high of Rs 576.35. In terms of performance against benchmarks, the stock has returned 1.87% over the past week and 7.85% over the past month, contrasting with a decline in the Sensex of 0.77% and 3.26%, respectively. The company benefits from strong fundamentals, including a high return on capital employed (ROCE) of 21.98%, a low debt to EBITDA ratio of 0.44, and significant cash reserves of Rs 874.50 crore, which contribute to its healthy long-term growth prospects.
In the broader market context, while Elgi Equipments has shown resilience with positive short-term returns, it has underperformed on a year-to-date basis with a decline of 0.98%, compared to a 3.29% increase in the Sensex. The stock's liquidity remains adequate, although there has been a notable decrease in delivery volume, which fell by 35.9% against the five-day average. Despite this, the company's strong institutional holdings at 32.84% indicate confidence from larger investors, which may support the stock's upward movement amidst a challenging market environment.