Why is Karma Energy Ltd falling/rising?

As of 26-Sep, Karma Energy Ltd's stock price is currently at Rs 64.87, reflecting a decline of 3.41 points or 4.99%. The stock has been underperforming, having fallen consecutively for the last two days, resulting in a total drop of 9.74% during this period. Despite this recent downturn, the stock has shown strong performance over the past week and month, with returns of 20.13% and 24.77%, respectively. However, the company is facing significant challenges, including operating losses and a weak ability to service its debt, indicated by a poor EBIT to Interest ratio of -1.09. The stock's low profitability, as evidenced by a Return on Equity of just 2.22%, contributes to its perception as a risky investment.
Broader market context shows that while Karma Energy Ltd has experienced a strong return over the past three years at 126.42%, it has underperformed the benchmark Sensex, which has returned 40.74% in the same period. In the short term, the stock's performance has been notably better than the Sensex, which has declined by 2.66% over the past week. However, the current price movement reflects investor concerns about the company's financial health, particularly given its negative operating profits and high PEG ratio of 2.9, indicating that the stock may be overvalued relative to its earnings growth.