Why is Muthoot Microfin falling/rising?

As of 10-Jul, Muthoot Microfin Ltd's stock price is currently at Rs 170.50, reflecting an increase of Rs 9.85 or 6.13%. The stock has shown strong performance recently, with a 12.65% rise over the last three days and a weekly return of 17.87%, significantly outperforming the Sensex, which has remained nearly flat at -0.06%. Additionally, the stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a positive trend. However, it is important to note that the company has reported negative results in the last three consecutive quarters, with a significant decline in net sales and a very low operating profit to interest ratio, which could weigh on investor sentiment despite the recent price increase.
In the broader market context, while Muthoot Microfin has outperformed the benchmark in the short term, it has underperformed over the past year, generating a return of -30.11% compared to the Sensex's 4.09%. This long-term underperformance, combined with the company's negative financial results and high valuation metrics, suggests that while there may be short-term gains, the overall outlook remains cautious. The stock's recent rise may be attributed to increased investor participation and positive sentiment in the short term, but the underlying financial challenges could pose risks moving forward.