Religare Enterprise Ltd.......cmp...370......and P/E also 370?

Dear Friends,
I today wants to discuss a co named Religare Enterprise Ltd. Why the price is Rs 370 when the earning is just 3 cr on an eq base of 76 cr for last qr ! and hence the eps is just .17 for the last qr?Why the market is giving so high P/E ratio to this co?If we take full year earnings it is barely 1 eps and still the price is Rs 370! Why?It means that P/E ratio is as high 370 ! Can one imagine that a co can have an P/E ratio of 370 in bear market?
Let us discuss why it is so.I think very less analyst or stock market pundit will try to come out and explain why that is happening.I am trying to do that.I am a very small person to speak something in this subject as I do not know how to read Balance Sheet, do not know what is Cash Flow,do not able to understand RONW etc etc.........but what I can read is the growth and the visibility and I will be talking on that today.
First thing I would like to write here about Religare Enterprise Ltd is , it comes from a very reputed house, Ranbaxy gr.If someone remember I have recomended Religare Technova Solution and it is also from the same gr.
So being a good corp house the market will give higher discounting and that is the first thing one needs to remember .If someone can recall i wrote here recently and may have written in past as well that Insurance is the upcoming sector and we needs to find stocks in this sector.The reason Religare Enterprise getting high discounting is it is getting ready to takeover American International Group’s (AIG) investment unit and being an US co one can imagine what can be the growth prospect from hereon with Religare Enterprise Ltd . I have pasted the entire text that I came to read on internet which one will be able to read at the end of the post.
Sometimes market gives thumbs up to certain co and many times, rather most of the times, the experts,the stock analyst,pundit fails to understand the finer print and feel that the price is high and one can't invest in such co but they are wrong here.Market and stocks always discount future and not the present.I had written this sentence umpteen times that Market discounts future and not present.Market sees what is going to happen and not what is happening and gives price accordingly.
We also invest in a co whose growth is going to be great hence we also do the same thing then why we look at the latest results?Latest results are just good enough for the direction of future and one or two qr results never makes a co bad .
Likewise buying stock is not seeing the eps or P/E ratio or sales or Mcap or balance sheet.Ofcourse they are necessary ingrediant to look at but not the only one.
That is what one needs to learn and that is what one should be able to make out what is going on.I have always written that try to find stocks on your own.In one of my point "How to pick multibagger "is this also that when one has bought the stock one needs to find everything one can.In this age of internet one can find anything on computer.Internet has made things easy for us.Go and find whatever you can in where you are investing.Finding facts will give enormous CONFIDENCE to you and you will be at ease.This CONFIDENCE will bring CONVICTION which is very necessary in stock market. Have you ever heard Rakesh Jhunjhunwala on TV?He is always optimist and is sure about the bull market.Why?Because he knows what is going to come up.He has got the vision and he is confident of that and hence we never saw selling his core holding in this bear market.

After reading the below news anyone can say what can be the growth for this co.
and one should not wonder why market is giving thumbs up to this finance co.

Here is the news I read for Religare Enterprise Ltd on Internet :

The latest report suggests that the Delhi-based firm may buy the asset management firm independently.New Delhi :


Financial services conglomerate Religare Enterprises has emerged as frontrunner to acquire American International Group’s (AIG) investment unit. Earlier reports indicated that Religare will partner will Australian banking giant Macquarie to buyout AIG Investments.
The latest report suggests that the Delhi-based firm may buy the asset management firm independently according to Financial News. Religare is being advised by Jefferies on the bid.
A spokesperson from Religare declined to comment on this development.

Franklin Templeton Investments, one of the largest asset managers in the world, was also in the race but pulled out last month. Singapore state investor Temasek Holdings Pte Ltd, Hong Kong tycoon Richard Li's Pacific Century Group, and New York-based private equity firm Crestview Partners LP, were also part of the Franklin consortium.

While Temasek and Pacific Century pulled out with Franklin, Crestview is still reported to be in the race. Last week the PE firm was reported to be close to the deal at a price of $300-400 million.

AIG Investments, which manages funds in excess of $85 billion, is expecting a valuation of $500 million. The latest report says that Religare is willing to spend $500 million to build an international asset management business. AIG is selling its assets in order to repay the $182.5 billion bailout by the US government.

Last year, Religare acquired London-based broker Hichens Harrison & Co Plc for £56 million. The firm appointed Matthew H Mongia as a Director, Global Asset Management, of Religare Hichens Harrison earlier this year to develop its asset management vertical via new product launches and strategic acquisitions globally. Mongia has worked with Monsoon Capital and Fidelity Investments.

Religare Enterprises Ltd is the financial services company owned by Malvinder and Shivinder Singh, the promoters of Ranbaxy Pharmaceuticals. The Singhs signed a deal with Japanese pharma company Daiichi Sankyo in June 2008 to sell their 34.8% stake in the company for Rs 9,576 crore.

Since then, the Singhs have been expanding their financial services and healthcare business.