Why is Muthoot Cap.Serv falling/rising?

As of 16-Jul, Muthoot Capital Services Ltd is experiencing a rise in its stock price, currently at Rs 357.65, reflecting an increase of 1.2 (0.34%). The stock has shown strong performance recently, gaining 3.73% over the last three days and outperforming its sector by 0.57%. In terms of returns, Muthoot Capital has delivered a remarkable 20.95% increase over the past month and a 17.07% increase over the past year, significantly outperforming the Sensex, which has only risen by 1.02% and 2.38% in the same periods, respectively. Despite a decline in profits by 11% over the past year, the stock's attractive valuation, indicated by a Price to Book Value of 0.9 and a Return on Equity of 7, suggests it is trading at a discount compared to its peers, contributing positively to its recent price movement.
In the broader market context, Muthoot Capital's short-term performance has been notably strong, especially when compared to the Sensex, which has declined by 1.08% over the past week. This outperformance in both the short and long term, alongside a solid liquidity position, indicates investor confidence despite some concerns regarding long-term growth and weak fundamentals, such as a negative trend in net sales and operating profit. The lack of domestic mutual fund investment may reflect caution among institutional investors, but the stock's recent gains suggest that retail investors are currently optimistic about its potential.