Question

Decide whether you should invest in Hartalega Holdings Berhad or not. Explain. (20m)

Decide whether you should invest in Hartalega Holdings Berhad or not. Explain. (20m)

Homework Answers

Answer #1

1. Hartalega Holding Berhad is engaged in Manufacturing and sale of Latex gloves,Nitrile gloves & Original equipment manufacturer (OEM) gloves.

2. The company is under medical equipment & supplies industry which is now in limelight because of the ongoing pandemic sitatuation and the company has delivered an excellent June quarterly results.

3.The Company's Stock price is now trading near to its 52 week high and has P/E ratio (Price to equity ratio) of 109.62 which makes the stock very expensive.

4.The company is having a Debt to equity ratio(D/E ratio) of 8.95 times which makes it more riskier to invest at the moment. Any company having D/E ratio of around 1 times or less than that is considered good for investment.

5. Historically the company has not performed very well as compared to its Peers.

In My view one should avoid investing in this Stock.

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