Why is Karma Energy Ltd falling/rising?

As of 26-Jun, Karma Energy Ltd's stock price is currently at Rs 70.00, reflecting a decrease of Rs 2.02 or 2.8%. The stock has been underperforming, having fallen consecutively for the last two days, resulting in a total decline of 6.59% during this period. Today's trading saw the stock reach an intraday high of Rs 75.77 but ultimately closed lower, indicating high volatility with an intraday fluctuation of 6.19%. Despite a strong performance over the past year with a return of 22.72%, the company is facing significant challenges, including operating losses and a high Debt to EBITDA ratio of 3.35 times, which raises concerns about its long-term fundamental strength and profitability.
In the broader market context, Karma Energy Ltd's recent performance contrasts sharply with the benchmark Sensex, which has gained 2.94% over the past week. While the stock has shown positive returns over longer periods, its recent decline highlights a troubling trend, particularly given the flat results reported for March 2025 and a significant drop in delivery volume. This suggests a lack of investor confidence, compounded by the company's weak ability to service its debt and low profitability per unit of shareholder funds. Overall, the stock's current downward movement appears to be influenced by both internal operational challenges and external market conditions.