DuPont Decomposition
Why does STALLION earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.8% = 8.6% × 1.13 × 1.11
Latest: FY2025
Profitability
Net Margin
8.6%
11.4% →8.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.13x
1.89x →1.13x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.11x
1.61x →1.11x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 23.9 pp over 4 years. Driven by net margin declining (11.4% → 8.6%), asset turnover declining (1.89x → 1.13x), leverage falling (1.61x → 1.11x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.4% | 1.89 | 1.61 | 34.6% |
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 1.79 | 1.78 | 13.8% |
| FY2024 | ₹0Cr | ₹0Cr | 6.6% | 1.17 | 1.60 | 12.3% |
| FY2025 | ₹0Cr | ₹0Cr | 8.6% | 1.13 | 1.11 | 10.8% |
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.