DuPont Decomposition
Why does STARCEMENT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
12.3% = 10.4% × 0.81 × 1.46
Latest: FY2026
Profitability
Net Margin
10.4%
11.8% →10.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.81x
0.76x →0.81x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.46x
1.27x →1.46x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~12%. Driven by net margin declining (11.8% → 10.4%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.8% | 0.76 | 1.27 | 11.4% |
| FY2023 | ₹0Cr | ₹0Cr | 9.6% | 0.82 | 1.30 | 10.3% |
| FY2024 | ₹0Cr | ₹0Cr | 10.2% | 0.80 | 1.33 | 10.9% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 0.77 | 1.43 | 5.9% |
| FY2026 | ₹0Cr | ₹0Cr | 10.4% | 0.81 | 1.46 | 12.3% |
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.