Why is Muthoot Finance falling/rising?

As of 04-Sep, Muthoot Finance Ltd is experiencing a price increase, currently valued at 2,826.65, reflecting a rise of 39.95 or 1.43%. The stock has recently hit a new 52-week high of Rs.2834.4 and has outperformed its sector by 1.02%. Over the past two days, it has gained 4.88%, and it is trading above its 5, 20, 50, 100, and 200-day moving averages. The company has shown strong long-term fundamental strength with an average Return on Equity (ROE) of 20.32% and a significant net profit growth of 65.12%, contributing to positive investor sentiment. Additionally, high institutional holdings at 23.05% suggest confidence from knowledgeable investors, further supporting the stock's upward movement.
In the broader market context, Muthoot Finance has outperformed the Sensex, with a 1-week return of +6.84% compared to the benchmark's +0.80%. This trend of strong performance is consistent, as the stock has generated a 32.02% return year-to-date, while the Sensex has only increased by 3.30%. The stock's consistent returns over the last three years, along with positive quarterly results, have bolstered its appeal. However, it is worth noting that the stock is trading at a premium valuation, which could pose risks if market conditions change.