Why is Essar Shipping falling/rising?

As of 01-Sep, Essar Shipping Ltd's stock price is currently at 23.74, reflecting an increase of 0.39 or 1.67%. Despite this upward movement today, the stock has underperformed its sector by 0.75% and is trading below all its moving averages, indicating a bearish trend. Over the past week, the stock has decreased by 0.71%, and it has seen a significant decline of 12.27% over the past month. The company has reported positive results for the last four consecutive quarters, with a notable growth in profit after tax (PAT) of 152.14%. However, it also faces challenges such as a negative book value and a high debt-to-EBITDA ratio of 9.32 times, which raises concerns about its long-term fundamental strength and ability to service debt.
In the broader market context, while the Sensex has experienced a decline of 1.56% over the past week, Essar Shipping's performance has been notably worse, indicating a lack of investor confidence. The stock has underperformed the market significantly over the last year, with a return of -47.36% compared to the BSE500's -4.75%. This stark contrast highlights the stock's volatility and the risks associated with its current financial health, particularly given its negative EBITDA and the necessity for the company to either raise fresh capital or report profits to sustain its operations moving forward.