Why is Karma Energy Ltd falling/rising?

As of 25-Jun, Karma Energy Ltd is experiencing a decline in its stock price, currently at Rs 72.02, which reflects a decrease of Rs 2.92 or 3.9%. The stock has underperformed its sector by 5% today and has shown a trend reversal after two consecutive days of gains. It opened with a significant loss of 4.52% and reached an intraday low of Rs 71.55. Despite having generated a return of 20.13% over the past year and outperforming the BSE 500 in the last three annual periods, the company is facing challenges such as operating losses and a high debt to EBITDA ratio of 3.35 times, which indicates weak long-term fundamental strength. Additionally, the stock's delivery volume has fallen sharply by 76.42% against its 5-day average, suggesting declining investor participation.
In the broader market context, the stock's short-term performance has been notably poor, with a 10.15% decline over the past week, while the Sensex has increased by 1.61% during the same period. This stark contrast highlights the stock's struggles relative to the overall market. Although the company has shown consistent returns over the last three years, the recent flat results in net sales and negative operating profits contribute to its current volatility and risk profile, making it a less attractive investment compared to the benchmark.