Sstar wrote:I exited from LIOC share few years ago at Rs 49 after the IPO and since then haven't bought recently. Share never picked up during previous bull run, but it picked up during current bull. I am skeptical about their future growth due to transfer pricing. Most Indian companies exited from Market at a profit and I wonder what their long term strategy. This is a strategic asset to India which has a strategic value, so they wil run it irrespective of the profits or loss.
LIOC Profitability is temporary to me. Because the owners of IOC know that moment they show a big profit from LIOC, government of Sri Lanka is going ask LIOC to reduce fuel prices. Elections are around the corner so, you better be prepared for a surprise.
This is why I exited LIOC