Graham Number screen: 8 India stocks up to 61% margin of safety

A Graham Number screen has flagged eight India-listed stocks trading below the formula's intrinsic value as of 2026-11-05. The list is led by [Indegene](/stock/INDGN) (NSE: INDGN) at a 61.2% margin of safety and [LIC Housing Finance](/stock/LICHSGFIN) (NSE: LICHSGFIN) at 55.8%. The screen also catches Sammaan Capital, J&K Bank, REC, PFC, Central Bank and GIC Re. The P/E range is the story: 4.76 to 33.44. A margin of safety this wide does not show up often in Indian mid-caps. The Graham Number is a hard formula: the square root of 22.5 times trailing earnings per share times book value per share. It ignores growth and narrative. When a stock trades below that line, the market is pricing a break in book value or earnings. In this group, the discounts are not accidental. Public sector banks and non-bank lenders carry asset quality risk. Indegene carries a premium multiple that has compressed hard. PSU lenders and power financiers dominate the screen Central Bank and J&K Bank are state-owned lenders. REC and PFC are state-run power financiers. GIC Re is the state-backed reinsurer. That changes the margin-of-safety math. A low price-to-book bank can stay cheap if provisions eat equity. The FairStock Score for the PSU bank names is weaker on quality and momentum, which is what a Graham screen misses. [REC](/stock/RECLTD) (NSE: RECLTD) and [PFC](/stock/PFC) (NSE: PFC) trade at single-digit P/E multiples and pay dividends, but their loan books are tied to the electricity distribution cycle. The Graham Number says asset coverage is wide. It does not say when the market will care. Receivables from state utilities can stretch and keep the stocks below private NBFC multiples. At the other end, [Indegene](/stock/INDGN) has a P/E at the top of this list, around 33.44. Its 61.2% margin of safety looks like a valuation reset in pharma services, not a broken balance sheet. If revenue growth holds, that gap can close fast. If growth stalls, the Graham floor is lower than the cur...