LIC Housing: Should you buy into correction?

Stock trading at 24% lower than its peak on concerns of loan losses from non-individual loan book

Things have lately not been in favour of LIC Housing, given that the stock has lost momentum after it peaked at Rs 794 in August with the decline accentuating after its September quarter (Q2) results were declared on October 30.

Now trading at Rs 601, the stock has corrected 24 per cent since its peak, and is among the underperformers in recent times. The question is how much pain it entails for investors and whether the selling seen in the counter is overdone.

Operationally, Q2 was disappointing on most fronts, except it managed to curb its loan loss provisioning after a big