Why is Paisalo Digital falling/rising?

As of 03-Sep, Paisalo Digital Ltd's stock price is currently at Rs 33.33, reflecting an increase of Rs 2.27, or 7.31%. The stock has shown a strong performance recently, gaining 10.84% over the last three days and outperforming its sector by 6.47% today. The stock's returns over the past week and month are also positive, at +9.71% and +9.28%, respectively. However, despite these recent gains, the stock has experienced a significant decline of 46.14% over the past year. Positive factors contributing to the recent rise include strong long-term fundamental strength with a 21.63% CAGR growth in operating profits and an attractive valuation with a Price to Book Value of 2. Nonetheless, concerns such as a high debt-equity ratio of 2.32 times and a 26.18% pledge of promoter shares may weigh on investor sentiment.
Broader market context indicates that while Paisalo Digital has outperformed the benchmark Sensex in the short term, the overall market has been relatively flat, with the Sensex showing a slight decline of 0.27% over the past week. The stock's year-to-date performance is notably poor, with a decline of 33.07% compared to the Sensex's gain of 3.11%. This underperformance over a longer horizon, coupled with the high level of pledged shares, suggests that while there may be short-term gains, the stock faces significant challenges that could impact its future performance in a broader market context.