Why is Karma Energy Ltd falling/rising?

As of 02-Jul, Karma Energy Ltd is currently priced at Rs 71.00, reflecting a decrease of Rs 3.59 or 4.81%. Today's price summary indicates that the stock has underperformed its sector by 4.54%, with an intraday low of Rs 70.87, which is a decline of 4.99%. Despite generating a return of 16.41% over the past year and consistently outperforming the BSE500 in the last three annual periods, the company is facing significant challenges, including operating losses and a high Debt to EBITDA ratio of 3.35 times. The recent drop in delivery volume by 93.21% against the 5-day average suggests falling investor participation, which may be contributing to the stock's decline.
In the broader market context, the stock's performance over the past week shows a decline of 1.42%, while the Sensex has increased by 0.79%. This indicates that the stock is not only underperforming its sector but also the overall market. Although Karma Energy Ltd has shown strong returns over longer periods, the current operational weaknesses and negative profitability signals are likely causing investor concern, leading to the stock's recent price drop.