DuPont Decomposition
Why does BLUESTARCO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.4% = 4.3% × 1.45 × 2.50
Latest: FY2026
Profitability
Net Margin
4.3%
2.8% →4.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.45x
1.39x →1.45x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.50x
4.24x →2.50x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.1 pp over 5 years. Driven by net margin improving (2.8% → 4.2%), leverage falling (4.24x → 2.50x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.8% | 1.39 | 4.24 | 16.5% |
| FY2023 | ₹0Cr | ₹0Cr | 5.1% | 1.45 | 4.09 | 30.1% |
| FY2024 | ₹0Cr | ₹0Cr | 4.3% | 1.45 | 2.54 | 15.9% |
| FY2025 | ₹0Cr | ₹0Cr | 4.9% | 1.45 | 2.69 | 19.3% |
| FY2026 | ₹0Cr | ₹0Cr | 4.3% | 1.45 | 2.50 | 15.4% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.