Graham Discounts Flag J&K Bank, Sammaan Capital, Central Bank

Graham discounts are showing up in three Indian financials. NSE: [J&K Bank](/stock/JKBANK) closed at ₹155.48, but the Graham Number screen puts fair value at ₹245.20. NSE: [Sammaan Capital](/stock/SAMMAANCAP) trades at ₹152.39 against a fair value of ₹320.26. NSE: [Central Bank of India](/stock/CENTRALBK) sits at ₹31.40 versus ₹71.46. The screen's margin-of-safety estimates range from 43.9% to 53.2%. P/E ratios sit between 6.23 and 9.70. Two PSU banks and one housing finance company screen cheap by this metric. That doesn't make them buys. It makes them candidates for deeper work. Graham discounts in numbers The Graham Number is a static test: the square root of 22.5 times EPS times book value per share. It assumes normal earnings and tangible book value. It does not price in loan growth or funding costs, and it ignores asset quality. That matters in financials. | Stock | NSE code | Price (₹) | Graham fair value (₹) | |---|---|---|---| | J&K Bank | JKBANK | 155.48 | 245.20 | | Sammaan Capital | SAMMAANCAP | 152.39 | 320.26 | | Central Bank of India | CENTRALBK | 31.40 | 71.46 | At these fair values, the per-share gap runs from ₹89.72 for J&K Bank to ₹167.87 for Sammaan Capital. Central Bank sits at a ₹40.06 gap on a ₹31.40 stock. That's a wide range of outcomes hidden inside one screen. Sector impact: PSU banks and housing finance J&K Bank and Central Bank carry PSU bank valuations. The discounts are not new. Markets have priced PSU banks below private banks for years. The P/E ratios between 6.23 and 9.70 reflect expected asset quality risk. A low P/E can stay low if book value erodes. Central Bank of India's Graham gap looks large because the stock trades near ₹31. A ₹40 gap on a ₹31 price is the type of setup that attracts deep value investors. It also attracts value traps. Sammaan Capital is a housing finance company. Its gap is the widest in absolute terms. The company relies on borrowing from markets, banks, and securitization. So bond yields matter. A...