Why is Tata Elxsi falling/rising?

As of 19-Aug, Tata Elxsi Ltd. is experiencing a price increase, currently at 5,726.10, reflecting a rise of 46.95 or 0.83%. The stock has shown a consecutive gain over the last two days, outperforming its sector by 0.48%. Despite this short-term positive movement, the stock has underperformed over the longer term, with a 1-month return of -7.10% and a year-to-date decline of -15.98%. The company maintains strong long-term fundamentals, evidenced by an average Return on Equity (ROE) of 31.37% and a low Debt to Equity ratio. However, recent negative results, including a significant drop in PAT and net sales, have contributed to a perception of an expensive valuation relative to its peers, which may be impacting investor sentiment.
In the broader market context, Tata Elxsi's short-term performance of +1.97% over the past week slightly outpaces the Sensex's return of +1.76%. However, the stock's longer-term performance has been concerning, with a -17.28% return over the past year compared to the Sensex's +1.52%. The stock's consistent underperformance against the benchmark over the last three years, coupled with a decline in profits, suggests that while there may be short-term gains, the overall trend remains negative, which could influence investor confidence moving forward.