Why is ESAF Small Fin falling/rising?

As of 16-Sep, ESAF Small Finance Bank Ltd's stock price is currently at 30.04, reflecting an increase of 0.42 (1.42%). The stock has been gaining momentum, having outperformed its sector by 0.96% today and achieving a consecutive gain over the last four days, with a total return of 2.81% during this period. However, despite this recent uptick, the company faces significant challenges, including a low Capital Adequacy Ratio of 0%, indicating inadequate buffers against risk, and a high Cost to Income ratio of 79.65%. The bank has reported negative results for the last six consecutive quarters, with a net profit decline of -236.43% annually, contributing to a poor long-term growth outlook. Additionally, domestic mutual funds hold no stake in the company, which may reflect a lack of confidence in its valuation and business prospects.
In the broader market context, the stock has shown a short-term return of +2.74% over the past week, outperforming the Sensex, which has gained +1.58% in the same timeframe. However, the year-to-date performance remains concerning, with the stock down -28.54% compared to a +5.43% increase in the benchmark. This underperformance over the longer term, alongside the recent positive price movement, suggests that while there may be short-term optimism, the underlying financial health of ESAF Small Finance Bank Ltd continues to raise red flags for investors.