Why is Tata Elxsi falling/rising?

As of 08-Aug, Tata Elxsi Ltd. is experiencing a decline in its stock price, currently at Rs 5,759.10, reflecting a decrease of Rs 135.85 or 2.3%. Today's performance indicates that the stock has underperformed its sector by 1.5%, with an intraday low of Rs 5,741.20, marking a drop of 2.61%. The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a bearish trend. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 29.56% compared to the 5-day average. Over the past year, Tata Elxsi has generated a return of -15.55%, with negative results reported in June, including a 21.6% fall in PAT and the lowest net sales recorded.
In the broader market context, Tata Elxsi's short-term performance has been notably weaker than the benchmark, with a 1-week return of -4.76% compared to the Sensex's -0.92%. This consistent underperformance over the last three years, coupled with a high valuation relative to its fundamentals, has contributed to investor caution. Despite strong long-term fundamentals, including a solid return on equity and low debt levels, the recent negative financial results and declining sales have overshadowed these strengths, leading to a lack of confidence among investors.