DuPont Decomposition
Why does STAR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
138.9% = 81.8% × 0.73 × 2.34
Latest: FY2025
Profitability
Net Margin
81.8%
-1.4% →81.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.15x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.34x
3.00x →2.34x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 139.6 pp over 3 years. Driven by net margin improving (-1.4% → 81.8%), asset turnover improving (0.15x → 0.73x), leverage falling (3.00x → 2.34x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -1.4% | 0.15 | 3.00 | -0.6% |
| FY2024 | ₹0Cr | ₹0Cr | 8.7% | 0.11 | 1.64 | 1.5% |
| FY2025 | ₹0Cr | ₹0Cr | 81.8% | 0.73 | 2.34 | 138.9% |
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.