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%
78.4% →77.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.01x
0.03x →0.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.09x
1.00x →1.09x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.1 pp over 4 years.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 78.4% | 0.03 | 1.00 | 2.0% |
| FY2023 | ₹0Cr | ₹0Cr | 77.5% | 0.02 | 1.01 | 1.5% |
| FY2024 | ₹0Cr | ₹0Cr | 78.1% | 0.01 | 1.06 | 0.9% |
| 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.