Why is Aavas Financiers falling/rising?

As of 12-Sep, Aavas Financiers Ltd. is currently priced at 1,634.30, reflecting an increase of 15.7 points or 0.97%. The stock has shown a positive trend recently, gaining 3.12% over the last three days and outperforming its sector by 0.38% today. However, it has had a mixed performance over longer periods, with a decline of 5.28% over the past month and a significant drop of 29.29% over the last three years. The company has strong long-term fundamentals, evidenced by an average Return on Equity (ROE) of 12.54% and healthy growth rates in net sales and operating profit. Nevertheless, the stock faces challenges, including a high valuation with a Price to Book Value of 3.4 and a concerning increase in pledged promoter shares, which could exert downward pressure on the stock price.
In the broader market context, Aavas Financiers has outperformed the Sensex in the short term, with a 1-week return of 2.78% compared to the benchmark's 1.48%. Despite this short-term outperformance, the stock has consistently underperformed against the benchmark over the last three years, generating a return of -9.16% compared to the Sensex's -1.28% over the same period. This consistent underperformance, coupled with a decline in investor participation and a high proportion of pledged shares, suggests that while the stock may be experiencing a temporary rise, underlying issues could hinder its long-term prospects.