Graham Number Flags GIC Re, Sammaan Capital Deep Value

The discount is not subtle FairStock's Graham Number screen is flashing on two Indian financials. [GIC Re](/stock/GICRE) (NSE: GICRE) closed at ₹352.10 against a Graham Number of ₹657.92. [Sammaan Capital](/stock/SAMMAANCAP) (NSE: SAMMAANCAP) closed at ₹152.39 against ₹320.26. The screen puts the margin of safety at 41.8% for GIC Re and 53.2% for Sammaan Capital. That is not a screen error. GIC Re's price to Graham Number ratio stands at 0.535. Sammaan Capital's ratio is 0.476. For investors who use Benjamin Graham's framework, a ratio below 0.7 is already a value candidate. Below 0.5 is rare. Read those numbers again. A reinsurer with a P/E of 6.96 and a FairStock Score of 74 trades at nearly half its Graham Number. An NBFC with a P/E of 9.70 trades at less than half. If the formula is directionally correct, the market is saying these books are not worth their stated net worth. What Graham Number does and does not do The Graham Number is a conservative intrinsic value estimate. It multiplies earnings per share by book value per share, applies a 22.5 cap, and takes the square root. It works best for financial companies with tangible books. It does not capture interest rate shocks or underwriting cycles. That gap is why these discounts persist. GIC Re's discount sits inside a wider India insurance story. Primary insurers have recovered from pandemic-era claims. Reinsurance pricing has stayed firm after global catastrophe losses. GIC Re's P/E of 6.96 implies the market expects poor return on equity or a sharp claims spike. The FairStock Score of 74 says the balance sheet is stronger than the price suggests. That is a real divergence. Sammaan Capital is harder to underwrite. The stock has a FairStock Score of 54, well below GIC Re. A lower score usually tracks debt levels and asset quality. Housing finance and wholesale NBFCs have been repriced since 2018. A P/E of 9.70 is cheap only if the loan book holds and funding costs stay stable. If not, the Graham Number b...