Why is Aavas Financiers falling/rising?

As of 23-Sep, Aavas Financiers Ltd. is experiencing a decline in its stock price, currently at 1,658.65, reflecting a decrease of 19.6 points or 1.17%. The stock has underperformed its sector by 0.61% today and has shown a trend reversal after two consecutive days of gains. While the stock is trading higher than its 20-day moving average, it remains below the 5-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has seen a slight increase of 0.11%, but it has underperformed the benchmark Sensex over the last year with a return of -12.29%. The company's strong long-term fundamentals, indicated by an average Return on Equity (ROE) of 12.54% and healthy growth in net sales and operating profit, are overshadowed by concerns regarding its valuation and high percentage of pledged promoter shares.
In the broader market context, Aavas Financiers has consistently underperformed against the benchmark over the last three years, with a significant decline of 23.77% compared to the Sensex's gain of 41.31%. The stock's recent performance is further impacted by its expensive valuation, as indicated by a Price to Book Value of 3.5, and a high PEG ratio of 1.7 despite profit growth. Additionally, the increase in pledged promoter shares, now at 54.05%, adds downward pressure in a falling market, contributing to the stock's negative sentiment. Overall, the combination of these stock-specific factors and broader market trends is leading to the current decline in Aavas Financiers' stock price.