LIC Housing Finance, J&K Bank: 50% Below Graham Number

LIC Housing Finance changed hands at ₹500 on the NSE against a Graham Number of ₹1217.57. J&K Bank traded at ₹155.48 against a Graham Number of ₹245.20. The screen flags a 55.8% margin of safety for LIC Housing Finance and a 50.5% discount for J&K Bank. Both names carry single-digit P/E ratios, but this is arithmetic value screening, not a standalone buy call. The Graham Number is a formula from Benjamin Graham's defensive investor framework. It uses book value per share and trailing earnings per share, multiplies them by 22.5, and takes the square root. It is a ceiling, not a target. A stock below that ceiling can stay below it if book value shrinks or earnings per share fall. That is the central tension for these two financials. LIC Housing Finance: a wide discount, but why [LIC Housing Finance](/stock/LICHSGFIN) trades at ₹500. The market is pricing NIM compression and slower loan book repricing. Housing finance margins have stayed under pressure because wholesale borrowing costs moved faster than retail loan yields. The single-digit P/E suggests the market expects muted earnings growth. The 55.8% margin of safety is real arithmetic only if the balance sheet holds. A FairStock Score above 70 would add confidence; the screen does not guarantee that quality filter. J&K Bank: regional book, wider perceived risk [J&K Bank](/stock/JKBANK) at ₹155.48 reflects a different set of risks. Its deposit franchise is concentrated, and credit costs can move sharply with local economic conditions. A 50.5% discount to Graham Number is not the same as a beaten-down private bank. The stock trades at a single-digit P/E, but price-to-book multiples stay below levels that general market assigns to stable banks. The discount is wide because the market questions book quality and growth. Sector impact: cheap financials, but not all cheap for same reason Indian financials have been repriced across the board. RBI risk weight changes raised capital costs for some lending segments, a...