How Profitable is a Business? Let's Break it Down with DuPont Analysis
Investors often seek reliable methods to identify fundamentally strong stocks, and DuPont Analysis offers a clear, structured way to do just that. By breaking down Return on Equity (ROE) into profitability, efficiency, and leverage, DuPont helps uncover what truly drives a company's performance. This article guides investors on how to use DuPont Analysis as a stock-picking tool, with real examples from Sun Pharma and Lupin to illustrate the process.