Why is Karma Energy Ltd falling/rising?

As of 07-Jul, Karma Energy Ltd is experiencing a decline in its stock price, currently at Rs 70.90, which represents a decrease of Rs 2.6 or 3.54%. Today's price summary indicates that the stock has underperformed its sector by 4.24%, with significant intraday volatility of 7.39%. The stock opened with a gain of 3.2% but reached a day's high of Rs 75.85 before falling to a low of Rs 69.83. Over the past week, the stock has decreased by 2.73%, while it has shown a strong performance over the past month with a return of 25.53%. However, the company faces challenges such as operating losses and a high Debt to EBITDA ratio of 3.35 times, which contribute to its weak long-term fundamental strength.
In the broader market context, the Sensex has only slightly declined by 0.20% over the past week, indicating that Karma Energy Ltd's recent performance is worse than the overall market trend. Despite a year-to-date return of 15.76% compared to the Sensex's 6.79%, the company's low profitability, as evidenced by a Return on Equity of 2.41% and negative operating profits, raises concerns among investors. The stock's performance is further complicated by flat results in net sales, which have decreased by 28.81% over the last nine months. These factors collectively suggest that while there may be short-term gains, the underlying financial health of Karma Energy Ltd is causing investor apprehension, leading to its current price decline.