Graham Number Screen Flags Deep Value in Indian Stocks

Graham Number screen flags a deep margin of safety in Indian stocks as of October 26, 2026. Eight names trade 41.8% to 61.2% below their Graham Number, a conservative fair-value calculation that combines earnings per share and book value per share. The formula is sqrt(22.5 × EPS × BVPS). It imputes a maximum P/E of 15 and a maximum price-to-book of 1.5. That combination's intentionally harsh. It screens out companies with thin book value or weak earnings. When a stock passes, the market is pricing it far below what Benjamin Graham would call fair value. The screen isn't a buy list. It's a quant first pass. The current screen is concentrated in state-owned financials. The eight names: - [Indegene](/stock/INDGN) (NSE: INDGN) - [LIC Housing Finance](/stock/LICHSGFIN) (NSE: LICHSGFIN) - [Sammaan Capital](/stock/SAMMAANCAP) (NSE: SAMMAANCAP) - [J&K Bank](/stock/J&KBANK) (NSE: J&KBANK) - [REC](/stock/RECLTD) (NSE: RECLTD) - [PFC](/stock/PFC) (NSE: PFC) - [Central Bank of India](/stock/CENTRALBK) (NSE: CENTRALBK) - [General Insurance Corporation](/stock/GICRE) (NSE: GICRE) Graham Number Screen: The Math Behind the Margin The margin of safety range of 41.8% to 61.2% is wide because book value per share is rising for many of these names while share prices haven't kept pace. For [PFC](/stock/PFC) and [REC](/stock/RECLTD), book values have compounded over the last five years on the back of renewable and infrastructure loan growth. That keeps the denominator in the Graham Number moving higher. If the stock price stagnates, the reported margin of safety widens. For [LIC Housing Finance](/stock/LICHSGFIN) and [Sammaan Capital](/stock/SAMMAANCAP), the screen is flagging a housing finance book that carries single-digit returns on equity. The market is treating book value as a lower-quality asset because spread compression has eaten into forward earnings. A Graham Number screen doesn't care about market sentiment; it only looks at trailing EPS and book value. Sector by Sector...