Graham Number Screen Flags 8 Indian Stocks

FairStock.ai's Graham Number screen published 2026-09-28 flags eight Indian stocks trading 43.9% to 61.2% below the value derived from earnings and book value. The names are [Indegene](/stock/INDGN), [LIC Housing Finance](/stock/LICHSGFIN), [Sammaan Capital](/stock/SAMMAANCAP), [J&K Bank](/stock/J&KBANK), [REC](/stock/RECLTD), [PFC](/stock/PFC), [Central Bank](/stock/CENTRALBK) and [GICRE](/stock/GICRE). The screen does not call a bottom. It does not say these stocks are cheap relative to future cash flows. It says the current price sits below a formula Benjamin Graham described in The Intelligent Investor. Graham Number Screen: What It Flags The formula is the square root of 22.5 multiplied by earnings per share and book value per share. The 22.5 comes from Graham's limit of 15 times trailing earnings and 1.5 times book value. It has no growth input. It has no credit cycle input. That is deliberate. A low reading means the market is pricing earnings or book value with suspicion. For lenders, that suspicion usually tracks asset quality and net interest margins. For insurers, it tracks underwriting and investment returns. Indegene is the only non-financial on the list. Seven of the eight names are financials. That concentration is the story. The market is not treating these as ordinary cheap stocks. It is pricing a specific risk: that book value will not hold. Why the Margin of Safety Is Wide The spread is not uniform. FairStock.ai's screen reports margins of safety from 43.9% to 61.2%. The range matters. A 60% margin of safety can disappear if book value gets written down. That is especially true for public sector banks with older loan books. LIC Housing Finance (NSE: LICHSGFIN) and Sammaan Capital (NSE: SAMMAANCAP) face funding cost pressure and home loan competition. J&K Bank (NSE: J&KBANK) and Central Bank (NSE: CENTRALBK) carry the state ownership discount. REC (NSE: RECLTD) and PFC (NSE: PFC) hold power sector exposure. GICRE (NSE: GICRE) reflects reins...