ROE is ratio of (Profits earned)/(Equity). So manipulating profitability or equity component is how you change ROE.

1. Using more debt instead of putting in equity by promoters. Debt financing is cheaper than equity and also faster. So by this you decrease denominator thus improving ROE ratio.
2. This reduces the number of shares outstanding and thus reduces the denominator in the ROE formula, making ROE appear higher. While it can signal confidence in the company’s future, it doesn’t reflect actual operational improvements.
3. Basically window-dressing! using different accounting practices. For ex, extending the depreciation period for assets reduces depreciation expense, inflating net income and ROE.

1. Land hold is just another capex, how they utilise this efficiently to get returns is what matters, not appreciation of land value. Hence importance of ROCE.
2. Value of land is unlocked only when they are sold, that means they are shutting down those retail locations! or when company is being liquidated. So for this kind of industry valuation wont improve due to land holdings from investors perspective.
3. For retail industry land helps due to the following
   a. One time cost, variable cost go down, no rentals or rental escalations (was major reason for Big
   Bazar to shut shop).
   b. Benefit of depreciation
   c. Protection against market downturn as they can liquidate assets and raise money
4. Land holding however improves valuation for real estate companies, only if they are able get returns regularly by developing and selling.

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That’s why the world is moving to cleaner energy like solar, wind etc… Now car makers are moving the needle back. Its like power producers saying that we are no longer going to produce clean energy and we are going back to coal to produce power