Why is Elgi Equipments falling/rising?

As of 14-Aug, Elgi Equipments Ltd is experiencing a decline in its stock price, currently at Rs 491.50, which reflects a decrease of Rs 8.55 or 1.71%. The stock has underperformed the sector by 1.24% today and has been on a downward trend, falling consecutively for the last two days with a total decline of 5.48%. Over the past week, the stock has decreased by 8.13%, and it has also shown negative returns of 10.96% over the past month and 15.02% year-to-date. Despite these declines, the company maintains a high management efficiency with a return on capital employed (ROCE) of 21.98%, a low debt to EBITDA ratio of 0.44, and strong operating profit growth, which could indicate underlying strength despite the recent price drop.
In the broader market context, Elgi Equipments' short-term performance has significantly lagged behind the benchmark Sensex, which has only decreased by 0.03% over the past week. The stock's performance over the last month and year also contrasts sharply with the Sensex, which has gained 3.15% year-to-date, while Elgi Equipments has lost 15.02%. The rising investor participation, indicated by an increase in delivery volume, suggests some interest in the stock, but the overall liquidity remains adequate for trading. The company's strong fundamentals, including high institutional holdings at 32.84% and substantial cash reserves, may provide a buffer against the recent declines, yet the persistent underperformance relative to the market indicates a challenging environment for the stock.