How DuPont analysis helps Indian investors find high-quality stocks with sustainable ROE
Every investor dreams of finding the next big thing – a company that’s quietly building momentum before it takes off. We often start by looking at a company’s Return on Equity (ROE). It seems simple enough: a high ROE means the company is great at making profits for its shareholders.
But as many have learned the hard way, not all high ROEs are created equal. A high ROE can sometimes be a warning sign in disguise.
So, how do you tell the difference?
You use a powerful yet simple tool called DuPont Analysis. Think of it as a financial X-ray that breaks down the ROE to show you what’s really happening inside a company.
Manually calculating these numbers can be a task. Still, tools like Finology Ticker have an in-built DuPont Analysis…
