Why is Muthoot Microfin falling/rising?

As of 26-Aug, Muthoot Microfin Ltd's stock price is currently at Rs 150.65, reflecting a decline of Rs 6.55 or 4.17%. The stock has been underperforming, having fallen consecutively for the last two days, resulting in a total drop of 5.37% during this period. Over the past week, the stock has decreased by 6.17%, and it has also shown a significant decline of 11.02% over the past month. Despite strong long-term fundamental strength, including a 45.40% CAGR growth in net sales and positive results declared in June 2025 after three consecutive negative quarters, the stock's return over the last year has been notably poor, with a decrease of 35.54%. This is compounded by a very expensive valuation indicated by a negative return on equity of -12.6 and a price-to-book value of 1.
In the broader market context, Muthoot Microfin's performance has been significantly worse than the benchmark, with the BSE500 index showing a negative return of only 3.87% over the past year. The finance/NBFC sector has also experienced a decline of 2.02%, which may have contributed to the stock's downward trend. Additionally, there has been a notable decrease in investor participation, with delivery volume falling by 46% against the five-day average, indicating reduced interest in trading the stock. Overall, the combination of poor recent performance, high valuation concerns, and a declining sector has led to the stock's current downward movement.