Graham Number flags margin of safety in Indegene, LIC Housing

Eight NSE stocks now trade below their Benjamin Graham fair value estimates. The Graham Number screen flags arithmetic margin of safety, not a standalone buy signal. That distinction matters because the market's discount is often a statement about risk, not a pricing error. [Indegene](/stock/INDGN) (NSE: INDGN) shows the widest gap. Price: ₹555.80. Graham Number: ₹1278.09. That's a 61.2% discount. [LIC Housing Finance](/stock/LICHSGFIN) (NSE: LICHSGFIN) follows at 55.8%. The formula is simple: sqrt(22.5 × EPS × BVPS). It caps P/E at 15 and P/B at 1.5. A stock below this number has arithmetic margin of safety. That doesn't mean it's cheap. It means the trailing math works. Graham Number screen separates price from fair value The screen flagged eight names. Financials dominate: [Sammaan Capital](/stock/SAMMAANCAP), [J&K Bank](/stock/J&KBANK), [REC](/stock/RECLTD), [PFC](/stock/PFC), [Central Bank of India](/stock/CENTRALBK), and [LIC Housing Finance](/stock/LICHSGFIN). [GIC Re](/stock/GICRE) is the odd one. Indegene is the only healthcare services name. That concentration isn't random. PSU lenders and housing finance companies carry credit risk and deposit cost pressure. The market prices that risk. The Graham screen doesn't. It sees book value and trailing EPS. It doesn't see NIM compression or loan loss cycles. REC and PFC are exactly the kind of stocks where Graham Number discounts look wide but the balance sheet question is the real trade. Power sector receivables can be sticky. Book value can stay on paper while cash conversion lags. A 30% or 40% discount to Graham Number does not answer whether the market is wrong. It asks the question. GIC Re is different. Reinsurance underwriting cycles are not asset-heavy book value stories. A wide Graham Number discount here may reflect underwriting losses, not hidden value. The formula can't tell the difference. Margin of safety vs value trap in PSU financials Investors shouldn't confuse a large discount with a buy...