Why is Muthoot Finance falling/rising?

As of 15-Sep, Muthoot Finance Ltd is experiencing a price increase, currently trading at 2,938.10, reflecting a rise of 11.1 points or 0.38%. The stock has shown a positive performance today, aligning with sector trends, and has gained 2.13% over the last two days. It has also reached a new 52-week high of Rs. 2958.8. Over the past week, Muthoot Finance has outperformed the Sensex, with a return of 1.29% compared to the benchmark's 1.24%. The company has demonstrated strong long-term fundamentals, including a robust average Return on Equity (ROE) of 20.32% and a significant growth in net profit of 65.12%, contributing to its positive momentum.
In the broader market context, Muthoot Finance's year-to-date return of 37.23% significantly outpaces the Sensex's 4.67%, indicating strong investor confidence in the stock relative to the market. Despite a recent decline in investor participation, with delivery volume dropping by 53.67% against the five-day average, the stock remains liquid enough for trading. The high institutional holdings at 23.05% suggest that knowledgeable investors are backing the stock, further supporting its upward trajectory. However, the stock's premium valuation compared to peers and a PEG ratio of 0.5 may pose risks if growth expectations are not met in the future.