Graham Number Flags 8 India Stocks With Margin of Safety

FairStock screen shows wide discount to Graham Number Mumbai, September 25 (FairStock.ai) - The Graham Number screen inside FairStock flagged eight Indian stocks on Thursday with wide margins of safety after a sharp divergence between market price and accounting-based value. The screen compares the current price to the square root of 22.5 times trailing EPS times book value per share. It's a blunt formula. That's the point. FairStock data as of 2026-09-25 puts the eight names at discounts of 41.8% to 61.2% to their Graham Number. The group's P/E multiples range from 4.76 to 33.44. That spread tells you this is not one trade. It's a collection of very different balance sheets. The eight stocks span [Indegene](/stock/INDGN) (NSE: INDGN), [LIC Housing Finance](/stock/LICHSGFIN) (NSE: LICHSGFIN), [Sammaan Capital](/stock/SAMMAANCAP) (NSE: SAMMAANCAP), [J&K Bank](/stock/JKBANK) (NSE: J&KBANK), [REC](/stock/RECLTD) (NSE: RECLTD), [PFC](/stock/PFC) (NSE: PFC), [Central Bank of India](/stock/CENTRALBK) (NSE: CENTRALBK), and [GIC Re](/stock/GICRE) (NSE: GICRE). It's a list that mixes IT-enabled healthcare services with public sector lenders, housing finance, power financiers, and reinsurance. Why lenders and state-backed financiers dominate the screen The Indian market has rewarded quality growth names through 2026 while many state-linked lenders and housing finance companies have lagged. The screen captures that split. [REC](/stock/RECLTD) and [PFC](/stock/PFC) trade at single-digit P/E multiples. Their book values have compounded over years of retained earnings, so their Graham Numbers are high. The market is not willing to pay for that book value because power sector credit demand and state capital expenditure remain the key variables. [Central Bank of India](/stock/CENTRALBK) and [J&K Bank](/stock/JKBANK) carry low P/E ratios that reflect a history of credit costs and recapitalization cycles. The Graham screen sees accounting book value. An investor has to decide i...