Why is Elgi Equipments falling/rising?

As of 19-Sep, Elgi Equipments Ltd's stock price is currently at 500.55, reflecting a decline of 5.15 points or 1.02%. The stock has recently underperformed its sector by 0.88% and has experienced a trend reversal, falling after three consecutive days of gains. In terms of performance, the stock has shown a 6.88% increase over the past week, but it has declined by 1.59% over the last month and has a year-to-date drop of 13.45%. Despite a high management efficiency indicated by a return on capital employed (ROCE) of 21.98% and strong debt servicing ability with a low Debt to EBITDA ratio of 0.44, the stock's valuation appears expensive with a Price to Book Value of 8.5. Additionally, while the company has reported positive operating cash flow and profit growth, its significant underperformance over the past year, with a return of -31.81%, raises concerns among investors.
Broader market context shows that while Elgi Equipments has outperformed the Sensex by 6.88% in the past week, it has lagged behind in longer time frames, including a -1.59% return over the past month compared to the Sensex's +1.20%. The stock's performance has been below par in both the long term and near term, which may contribute to investor sentiment leaning towards selling. The high institutional holdings at 32.84% suggest that knowledgeable investors are closely monitoring the stock's fundamentals, and the overall market sentiment may be cautious due to the stock's high PEG ratio of 3.7, indicating potential overvaluation relative to its earnings growth.