Financial Performance Evaluation of Select Listed Companies of NSE-Emerge Using DuPont Analysis

Abstract

The National Stock Exchange of India (NSE) Emerge is a platform launched by the NSE specifically designed for Small and Medium Enterprises (SMEs) to access the capital market. It was introduced to provide these companies with an avenue to raise funds and offer their shares to the public. From the year 2012 SMEs are granted to raise funds in the capital market through SME stock exchange platform (BSE & NSE). This study aims to analyse the financial performance of select consumer durable goods manufacturing companies listed in NSE-Emerge by using DuPont analysis. In this study, the financial performance of seven consumer durable goods companies listed on NSE-Emerge was analyzed during the period of 2017-18 to 2021-22. The study examined the impact of tax burden, interest burden, operating income margin, assets turnover ratio, and equity multiplier on ROE by using 5 step DuPont approach. Overall, the study provides valuable insights into the financial performance and stability of the studied companies.