LIC Housing, REC, PFC Trade 47-56% Below Graham Value

LIC Housing, REC, PFC trade 47-56% below Graham value. That is the headline. LIC Housing Finance (NSE: LICHSGFIN) sits at ₹500 against a Graham Number of ₹1217.57, a 55.8% margin of safety. REC (NSE: RECLTD) and Power Finance Corp. (NSE: PFC) each sit 47.2% below their Graham Numbers. These are not obscure micro-caps. These are three of India's largest lenders to housing and power infrastructure. The market is not confused. It is repricing something. A P/E of 4.79 on [LIC Housing Finance](/stock/LICHSGFIN) does not appear by accident. Nor does 5.51 on [REC Limited](/stock/RECLTD) or 4.76 on [Power Finance Corporation](/stock/PFC). The question for investors: is that repricing rational, or has it overshot? FairStock Scores range from 72 to 77 across the trio. That puts them in the zone where quantitative value factors look compelling. But scores are not a forecast. They are a snapshot of how cheap the balance sheet and income statement have become. Why the Graham Number Gap Is This Wide A Graham Number uses book value per share and earnings per share. It is a blunt tool. It assumes the book value is real. It assumes earnings can continue. It assumes the multiple should normalize. When a stock trades 47-56% below that number, markets usually believe at least one assumption is broken. For [LIC Housing Finance](/stock/LICHSGFIN), the suspicion is asset quality in the developer loan book and a long stretch of low net interest margins. The lender has roughly ₹2.9 lakh crore in loan assets, but it does not command the market's trust on incremental spreads. At ₹500, the stock prices in a lot of bad news. The Graham Number says ₹1217.57. Somewhere between those two numbers sits the truth. For [REC Limited](/stock/RECLTD) and [Power Finance Corporation](/stock/PFC), the discount is less severe but still wide. Both finance power generation and transmission. Renewables now form a growing part of the book. Their earnings have been steady, and dividend payouts are real. So ...