Why is Karma Energy Ltd falling/rising?

As of 16-Jul, Karma Energy Ltd's stock price is currently at Rs 70.93, reflecting an increase of Rs 1.43 or 2.06%. Today's price summary indicates that the stock has outperformed its sector by 1.78% and has shown a trend reversal after two consecutive days of decline. It opened with a gain of 2.88% and reached an intraday high of Rs 71.5. Despite this positive movement, the stock has underperformed over the past month with a decline of 5.74%, and a significant drop of 23.04% over the past year. The company faces challenges such as operating losses, a high Debt to EBITDA ratio of 3.35 times, and low profitability, indicated by an average Return on Equity of 2.41%. These factors contribute to a perception of risk despite the recent price increase.
In the broader market context, the stock's short-term performance contrasts with the benchmark, as it has shown a decline of 0.80% over the past week while the Sensex fell by 1.08%. Year-to-date, Karma Energy Ltd has outperformed the benchmark with a return of 15.80% compared to the Sensex's 5.75%. However, the stock's long-term performance remains concerning, with a 1-year return of -23.04% against the market's positive return of 2.38%. This underperformance, coupled with the company's weak long-term fundamentals, suggests that while there may be short-term gains, the overall outlook remains cautious.