Thanks for highlighting - obviously my mistake to not be clear and explicitly mention "earnings per share" for those who'll take it at face value.
Let me be a bit more clear - "Stock prices should be slaves of EPS growth/de-growth in the long run (assuming earnings are real and a consistent EPS upward or downward trend of atleast 2 years or more depending upon company/promoter history, etc)"
Let me roll back to what you'd mentioned a few months back-
Now if you've gone through the Q4 earnings - obviously the company's performance has beaten your expectations with a higher YoY EPS in Q4 FY16
As for FY17 - I will not disagree that the higher interest cost can be a burden on the company this FY and the EPS may even deteriorate - but the market's already priced in that poor performance otherwise there is no way to justify the existing P/E of 5.5 (equivalent to a junk grade rating IMHO)
With all the corporate misgovernance / SEBI investigations of Tree House, Ricoh India etc - even they've been accorded better valuations.
Simply put - if there is something seriously wrong with the Sintex promoters which isn't public yet - we'll all find out soon enough (and I'll change my mind when the facts change) - but I can't understand the junk grade valuations of this company.