Why is Karma Energy Ltd falling/rising?

As of 19-Aug, Karma Energy Ltd is experiencing a decline in its stock price, currently at 56.98, which reflects a decrease of 0.29 or 0.51%. The stock has underperformed its sector today by 0.81% and has shown a trend reversal after two consecutive days of gains. Notably, the stock's performance over the past week has been positive at +2.32%, but it has significantly underperformed over the past month with a decline of 15.47%. The company is facing challenges with operating losses and a high Debt to EBITDA ratio of 3.35 times, indicating a weak long-term fundamental strength. Additionally, the stock's return on equity is low at 2.41%, suggesting limited profitability, which has contributed to its recent price movement.
In the broader market context, while the Sensex has shown a modest gain of 1.76% over the past week, Karma Energy Ltd's performance has lagged behind, particularly with a year-to-date return of -6.97% compared to the benchmark's gain of 4.49%. The stock's liquidity is adequate, but a significant drop in delivery volume by 85.53% against the 5-day average indicates falling investor participation, which may further pressure the stock price. Overall, the combination of negative operating profits, high debt levels, and underperformance relative to the market has created a challenging environment for Karma Energy Ltd, leading to its current decline.