Graham Number screen flags deep value in PFC, REC, LIC Housing

A 47.2% margin of safety. That's where Power Finance Corporation and REC Limited sit relative to Benjamin Graham's fair value, according to FairStock.ai. LIC Housing Finance showed a 55.8% margin of safety. J&K Bank came in at 50.5%. Graham Number screen flags deep value in PFC, REC, LIC Housing The screen uses Graham's formula, sqrt(22.5 x EPS x book value per share), to estimate fair value. [Indegene](/stock/INDGN) (NSE: INDGN), [Sammaan Capital](/stock/SAMMAANCAP) (NSE: SAMMAANCAP), [Central Bank of India](/stock/CENTRALBK) (NSE: CENTRALBK), and [GIC Re](/stock/GICRE) (NSE: GICRE) also made the list, with margins of safety ranging from 41.8% to 61.2%. Why PFC and REC trade below Graham value [Power Finance Corporation](/stock/PFC) (NSE: PFC) and [REC Limited](/stock/RECLTD) (NSE: RECLTD) are not typical value traps. Both lenders finance power projects across the electricity supply chain. India's power demand growth has stayed firm, and PSU financiers have access to low-cost funding. That backdrop supports their return on equity. The 47.2% margin of safety at PFC and REC means the market is pricing them well below Graham's intrinsic value. Part of that gap reflects concern about payment discipline at state distribution companies. But both lenders have improved their Stage 3 asset ratios over the past three quarters. The market is pricing them as if asset quality will deteriorate. That looks overly conservative. PFC's FairStock Score sits above 70, according to FairStock.ai data. The composite score combines valuation with momentum and quality inputs. The Graham Number screen is purely valuation, so a high FairStock Score means the stock is not just cheap on one metric. LIC Housing Finance and J&K Bank margin of safety [LIC Housing Finance](/stock/LICHSGFIN) (NSE: LICHSGFIN) carries a 55.8% margin of safety, the widest among the large-cap names flagged. The lender has dealt with margin compression and slow re-rating, even though housing loan demand stayed ...