Why is Tata Elxsi falling/rising?

As of 02-Sep, Tata Elxsi Ltd. is currently priced at 5,423.70, reflecting an increase of 73.7, or 1.38%. The stock has shown a positive trend recently, gaining 3.65% over the last two days and outperforming its sector by 1.31% today. However, it is trading below its moving averages across various time frames, indicating potential weakness. Despite the recent gains, the stock has underperformed significantly over the past month and year, with returns of -10.30% and -30.40%, respectively. The company's fundamentals show strong long-term strength with an average Return on Equity (ROE) of 31.37% and low debt levels, but it has faced challenges, including a decline in profits and sales in the latest quarter, which may contribute to investor caution.
In the broader market context, Tata Elxsi's recent performance contrasts with the benchmark, as it has experienced a decline of -0.99% over the past week compared to the Sensex's -0.78%. This underperformance is consistent with the stock's trend over the last three years, where it has consistently lagged behind the BSE500. The high institutional holdings at 22.54% suggest a level of confidence from more sophisticated investors, but the stock's valuation remains a concern, being considered expensive relative to its peers. Overall, while there are some positive indicators, the combination of recent negative financial results and ongoing underperformance against the benchmark may be influencing the stock's price movements.