Why is L&T Finance Ltd falling/rising?

As of 23-Jul, L&T Finance Ltd's stock price is rising, currently at 213.45, reflecting an increase of 4.35 or 2.08%. The stock reached a new 52-week high of Rs. 214.8 today and has outperformed its sector by 1.54%. Over the past week, the stock has gained 5.23%, and it has shown impressive returns of 57.41% year-to-date and 194.82% over the last three years. Despite a recent decline in investor participation, with delivery volume falling by 36.06% against the 5-day average, the stock remains liquid enough for trading. The company's strong performance is supported by high institutional holdings at 20.3%, which have increased by 1.54% over the previous quarter, indicating confidence from more sophisticated investors.
In the broader market context, L&T Finance Ltd's short-term performance significantly outpaces the benchmark, with a 5.23% increase over the past week compared to the Sensex's mere 0.11% rise. This trend of outperformance is consistent, as the stock has also outperformed the BSE500 over the last three years, one year, and three months. The company's solid return on equity of 10.3 and a fair valuation with a price-to-book ratio of 2.1 suggest that while the stock is trading at a premium compared to its peers, it continues to attract investor interest due to its market-beating performance and growth potential.