Graham Number Screen Flags Eight Indian Stocks

MUMBAI (FairStock.ai): A Graham Number screen run by FairStock.ai has flagged eight NSE stocks trading more than 40% below their fair value estimates. [Indegene](/stock/INDGN) NSE: INDGN shows the largest margin of safety at 61.2%, followed by [LIC Housing Finance](/stock/LICHSGFIN) NSE: LICHSGFIN at 55.8% and Sammaan Capital NSE: SAMMAANCAP at 53.2%. The screen applies Benjamin Graham's formula: the square root of 22.5 times earnings per share times book value per share. It produces a conservative estimate of intrinsic value. The eight names that cleared the threshold are NSE: INDGN, NSE: LICHSGFIN, NSE: SAMMAANCAP, NSE: J&KBANK, NSE: RECLTD, NSE: PFC, NSE: CENTRALBK and NSE: GICRE. Graham Number discounts concentrate in lenders Six of the eight flagged stocks are lenders. That concentration carries a warning. Book value for a lender is only as good as the loan book behind it. A wide discount to Graham Number can mean the market expects asset quality to deteriorate. [LIC Housing Finance](/stock/LICHSGFIN) NSE: LICHSGFIN trades 55.8% below its Graham Number. The lender has struggled with slow loan growth and rising competitive pressure from banks. The discount still means the market is pricing the stock at less than half of the Graham formula's conservative value. [Sammaan Capital](/stock/SAMMAANCAP) NSE: SAMMAANCAP trades 53.2% below fair value. The company has spent several years cutting its wholesale loan book and rebuilding retail lending. Its FairStock Score sits above 70, but the stock has not caught up with the balance sheet repair story. [REC](/stock/RECLTD) NSE: RECLTD and [Power Finance Corporation](/stock/PFC) NSE: PFC both clear the 40% threshold. They trade at single-digit price-to-earnings multiples and pay dividend yields above 3%. The Graham screen treats their book values as recoverable. If state power distribution companies delay payments, that assumption weakens. Yet the stocks remain widely held by income-focused domestic funds. [J&K Bank](...