DuPont Decomposition
Why does STEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.9% = 77.7% × 0.01 × 1.09
Latest: FY2025
Profitability
Net Margin
77.7%
73.2% →77.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.01x
0.02x →0.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.09x
1.01x →1.09x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by net margin improving (73.2% → 77.7%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 73.2% | 0.02 | 1.01 | 1.2% |
| FY2024 | ₹0Cr | ₹0Cr | 73.9% | 0.01 | 1.06 | 0.7% |
| FY2025 | ₹0Cr | ₹0Cr | 77.7% | 0.01 | 1.09 | 0.9% |
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.