Why is Muthoot Cap.Serv falling/rising?

As of 14-Jul, Muthoot Capital Services Ltd is experiencing a price increase, currently at Rs 349.85, reflecting a rise of Rs 5.05 or 1.46%. The stock has shown strong performance recently, with a 12.19% increase over the past week and a 16.02% increase over the past month, significantly outperforming the Sensex, which has declined by 1.42% in the same week. Today's trading saw the stock reach an intraday high of Rs 358.95, and it is currently trading above all key moving averages. However, there has been a notable decrease in investor participation, with delivery volume falling by 43.55% against the five-day average. Despite a positive return of 13.68% over the past year, the company's profits have declined by 11%, which raises concerns about its long-term growth potential.
In the broader market context, Muthoot Capital Services Ltd has outperformed the Sensex in both the short and long term, indicating strong relative performance. While the stock has generated positive returns, it is trading at a discount compared to its peers, which may attract investors looking for value. However, the company's weak long-term fundamentals, including a low return on equity and declining net sales, could deter some investors. Additionally, the absence of domestic mutual fund investment may signal a lack of confidence in the stock's future performance. Overall, while the stock is currently rising, underlying concerns about its long-term growth and profitability could impact its future trajectory.