Why is Muthoot Microfin falling/rising?

As of 30-Jun, Muthoot Microfin Ltd's stock price is currently at Rs 143.75, reflecting an increase of Rs 3.8 or 2.72%. The stock has shown strong short-term performance, with a 14.36% increase over the past week and a 12.48% rise over the past month, significantly outperforming the Sensex, which rose by 2.09% and 2.65% during the same periods. However, despite this recent uptick, the company has faced substantial challenges, including a decline in net sales of 18.47% and negative results for the last three consecutive quarters. The company's return on equity (ROE) is currently at -8, indicating a very expensive valuation, and its profits have fallen by 149% over the past year, contributing to a significant overall decline of 40.15% in stock returns over the last year.
In the broader market context, while Muthoot Microfin has outperformed the benchmark in the short term, it has underperformed significantly over the past year compared to the market, which has generated returns of 3.95%. The stock's recent rise may be attributed to its strong long-term fundamental strength and high institutional holdings at 27.79%, which suggest confidence from larger investors. However, the falling investor participation, as indicated by a 32.16% drop in delivery volume, raises concerns about sustained interest in the stock. Overall, while there are positive short-term movements, the underlying financial difficulties and negative performance trends suggest caution for potential investors.