Why is Muthoot Finance falling/rising?

As of 18-Aug, Muthoot Finance Ltd is experiencing a price increase, currently at 2,768.25, reflecting a rise of 10.7 or 0.39%. The stock has shown strong performance recently, gaining 10.26% over the last two days and outperforming the benchmark Sensex with a 7.07% increase over the past week compared to the Sensex's 0.83%. Additionally, Muthoot Finance has achieved a new 52-week high of Rs.2800.1 today. The company has demonstrated strong long-term fundamentals, with a consistent return on equity of 20.32% and a net profit growth of 65.12%, contributing to its positive momentum. However, it is trading at a premium valuation with a Price to Book Value of 3.8, which may raise concerns among some investors.
In the broader market context, Muthoot Finance's recent performance stands out, particularly as the finance/NBFC sector has gained by 2.31%. The stock's year-to-date return of 29.30% significantly surpasses the Sensex's 4.01% increase, indicating strong investor confidence. Furthermore, the rising investor participation, evidenced by a substantial increase in delivery volume, suggests a growing interest in the stock. Despite the stock's recent gains, it is essential to consider its expensive valuation relative to peers, which could pose risks if market conditions shift. Overall, the combination of strong fundamentals and positive market sentiment has contributed to the stock's upward movement.