Why is Muthoot Cap.Serv falling/rising?

As of 27-Jun, Muthoot Capital Services Ltd is experiencing a price increase, with its current price at 330.20, reflecting a rise of 6.35 or 1.96%. The stock has outperformed its sector today by 1.87%, and it is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has shown a strong performance with a return of +10.45%, and it has also outperformed the BSE 500 over the last three years, one year, and three months. However, despite a 5.16% return over the past year, the company's profits have declined by 11%, indicating some underlying weaknesses. The stock's attractive valuation, with a Price to Book Value of 0.8, suggests it is trading at a discount compared to its peers, which may contribute to its recent upward movement.
In the broader market context, Muthoot Capital Services Ltd's short-term return of +10.45% over the past week significantly exceeds the Sensex's +2.00% return in the same period. This strong performance in the near term contrasts with its year-to-date return of -1.12%, which lags behind the Sensex's +7.58%. The stock's liquidity is adequate, and rising investor participation, as evidenced by a 36.47% increase in delivery volume, further supports its recent price rise. However, the company faces challenges such as weak long-term fundamental strength, with a declining net sales growth rate and low domestic mutual fund interest, which could temper future performance despite the current positive momentum.