Market is right most of the time

I was wondering about a company named Prithvi Information Systems. The IPO came in Oct 2005 with a price band of 250-270. The company earned decent profit in years 2006, 2007 and 2008. Profit for FY2006 was 54 Cr, EPS 29 and in FY2007 was 90 Cr, EPS 50. Everything was fine till December 2007 but the stock market was not doing anything with the stock. The stock price was hovering between 250 - 400, with a P/E of 5-8 for an IT services company. But the latest result shows huge loss made by the company and the stock has plummeted below a price of 100. The company's revenues are more than 1000 Cr and the market cap is less than 250 Cr, that too for an IT services company, which generally boasts of market cap / sales ratio of more than 5. I am saying that the market is mostly right because if it is always right, as is the assumption of EMT (Efficient Market Theory), there wouldn't be value investors like
Warren Buffet and Seth Klarman. Hats off to the market.