SMC Global Securities Limited

🔔 Bharat Electronics Q4 Results Out Now! 💰 Net Profit: ₹2,127 Cr — up 18% YoY 📊 Revenue: ₹9,150 Cr — grew 7% YoY 🎉 Dividend: ₹0.90 per share declared #BharatElectronicsQ4Results #EarningsGrowth #Q4FY25 #Q4Results #DefenceStock #FY25Results #StockMarket #EarningsSeason https://t.co/mEQ0t4NK4c #BharatElectronicsQ4Results #EarningsGrowth #Q4FY25 #Q4Results #DefenceStock #FY25Results #StockMarket #EarningsSeason

And that’s a wrap! Next time you analyze a stock, don’t stop at ROE. Break it down with DuPont and dig deeper. Retweet to help fellow investors decode the real story behind ROE!

5️⃣3rd Driver: Equity Multiplier (Leverage) Equity Multiplier = Total Assets / Shareholders’ Equity This shows how much of the company’s assets are financed by equity vs debt High leverage? → Can boost ROE → But also increases financial risk Know when leverage is a strategy https://t.co/lGGWZEiqA7

7️⃣Example: Two companies with 20% ROE 🏢Company A • Profit Margin: 20% • Asset Turnover: 0.2x • Leverage: 5x 🏢Company B • Profit Margin: 15% • Asset Turnover: 1.1x • Leverage: 1.2x Same ROE, but B earns it through efficiency, not debt Co. B is more sustainable, Co. A

8️⃣How to Use DuPont in Your Stock Research → Spot operational strengths (or weaknesses) → See if management is efficient → Understand how much debt is powering the returns → Identify whether ROE is sustainable or a ticking time bomb It’s clarity in a single formula

6️⃣Here’s the Full DuPont Formula: ROE = (Net Profit / Revenue) × (Revenue / Assets) × (Assets / Equity) This 3-part breakdown shows you: → If ROE is high because of good business OR → If it’s artificially inflated by debt And that is the insight most investors miss

Disclaimer: This thread is for educational purposes only Always do your own research before investing

9️⃣In Short: Shareholders Care About This ROE tells them how much value their equity is creating. But DuPont tells them how that value is created. And in investing, understanding the “how” separates great investors from average ones

Live Example of DU Pont KIMS Hospital https://t.co/vlOV7qhbOw