Graham Number Screen Flags Deep Margin of Safety in India

Graham Number Screen: The Raw Numbers The Graham Number screen flags eight NSE/BSE stocks trading below fair value as of September 15, 2026. The formula is the square root of 22.5 times trailing EPS times book value per share. It's a conservative value yardstick. Right now it's flashing for a cluster of financials plus one healthcare IT name. [Indegene](/stock/INDGN) (NSE: INDGN) leads with a 61.2% margin of safety. That means the stock trades at roughly 38.8% of its Graham Number. [LIC Housing Finance](/stock/LICHSGFIN) (NSE: LICHSGFIN) follows at 55.8%. [REC](/stock/RECLTD) (NSE: RECLTD) and [PFC](/stock/PFC) (NSE: PFC) both sit near 47% margins with single-digit P/E ratios. The rest of the list screens below the Graham Number too: [J&K Bank](/stock/J&KBANK), [Sammaan Capital](/stock/SAMMAANCAP), [Central Bank of India](/stock/CENTRALBK), and [GIC Re](/stock/GICRE). | Stock | NSE Code | Margin of Safety | Sector | |---|---|---|---| | Indegene | INDGN | 61.2% | Healthcare IT | | LIC Housing Finance | LICHSGFIN | 55.8% | Housing finance | | REC | RECLTD | ~47% | Infrastructure lending | | PFC | PFC | ~47% | Power financing | | J&K Bank | J&KBANK | Below Graham | Banking | | Sammaan Capital | SAMMAANCAP | Below Graham | Housing finance | | Central Bank of India | CENTRALBK | Below Graham | Banking | | GIC Re | GICRE | Below Graham | Reinsurance | Data: NSE/BSE closing prices, September 15, 2026. Why Financials Dominate Seven of eight names are financials. That concentration is not random. The Graham Number leans on book value, and financials trade at low price-to-book when credit fear runs high. For PSU lenders and housing finance companies, the discount can reflect asset quality concerns and directed lending requirements. But the size of these margins demands closer attention. [LIC Housing Finance](/stock/LICHSGFIN) at 55.8% margin is pricing a lot of bad news. The market worries about developer loan credit quality and slower housing loan growth. If that wor...