Why is Five-Star Bus.Fi falling/rising?

As of 21-Aug, Five-Star Business Finance Ltd is experiencing a price increase, currently at Rs 585.00, reflecting a change of 4.4 (0.76%) upward. The stock has shown a trend reversal by gaining after two consecutive days of decline. Despite this recent uptick, the stock has underperformed significantly over the past month with a decline of 20.10%, while the Sensex has only decreased by 0.24%. The stock is currently 2.52% away from its 52-week low and has seen a rise in investor participation, with delivery volume increasing by 22.43% compared to the five-day average. The company boasts strong long-term fundamentals, with a return on equity of 15.67% and healthy growth in net sales and operating profit, although it has generated a negative return of -19.02% over the past year.
In the broader market context, the stock's short-term performance has been weaker than the benchmark, as indicated by its 1-week return of +0.30% compared to the Sensex's +1.74%. This underperformance is compounded by a high debt-equity ratio of 1.26, which raises concerns about financial stability. Additionally, while institutional holdings are strong at 67.6%, indicating confidence from larger investors, the stock's overall performance has been below par in both the near and long term. The attractive valuation and growth potential may not be enough to offset the negative sentiment stemming from its recent performance and high debt levels.