Graham Number Screen Flags Deep Value in PSU Lenders

Graham Number Screen Flags Eight NSE Stocks The Graham Number screen has thrown up eight NSE names trading below this conservative fair value, with deep margin of safety in PSU lenders and healthcare. For analysts who still use Benjamin Graham's formula, that's a signal. The screen combines earnings per share and book value per share: sqrt(22.5 × EPS × BVPS). That formula uses 15 times earnings and 1.5 times book value. It strips out growth assumptions and asks whether current earnings and book value justify the price. As of the latest scan, [Indegene](/stock/INDGN) (NSE: INDGN) leads with a 61.2% margin of safety. [LIC Housing Finance](/stock/LICHSGFIN) (NSE: LICHSGFIN) follows at 55.8%, and [Sammaan Capital](/stock/SAMMAANCAP) (NSE: SAMMAANCAP) sits at 53.2%. The rest of the list includes [J&K Bank](/stock/JKBANK) (NSE: JKBANK), [REC](/stock/RECLTD) (NSE: RECLTD), [PFC](/stock/PFC) (NSE: PFC), [Central Bank of India](/stock/CENTRALBK) (NSE: CENTRALBK), and [GIC Re](/stock/GICRE) (NSE: GICRE). A 61.2% margin means Indegene trades at roughly 39% of its Graham Number. That's not a small gap. It implies either the market sees a structural earnings reset or the stock has been oversold relative to book value and trailing profits. PSU Lenders and Housing Finance: Cheap for a Reason? The screen's concentration in PSU lenders and housing finance is not random. [LIC Housing Finance](/stock/LICHSGFIN) (NSE: LICHSGFIN) at 55.8% below Graham Number reflects a familiar tension: stable mortgage demand but persistent concerns about net interest margins and operating costs. The stock's book value has grown, while the share price hasn't kept pace. [Sammaan Capital](/stock/SAMMAANCAP) (NSE: SAMMAANCAP) shows a 53.2% margin of safety. This NBFC has been through a balance sheet restructuring phase, and the market has kept its multiple low. The Graham screen says the stock should be higher if current EPS and book value hold. That "if" is the entire debate. If loan growth recovers...