DuPont Decomposition
Why does GRINDWELL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.4% = 13.6% × 0.89 × 1.36
Latest: FY2026
Profitability
Net Margin
13.6%
14.8% →13.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
0.94x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.36x
1.35x →1.36x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.5 pp over 5 years. Driven by net margin declining (14.8% → 13.6%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.8% | 0.94 | 1.35 | 18.9% |
| FY2023 | ₹0Cr | ₹0Cr | 14.3% | 1.05 | 1.33 | 20.0% |
| FY2024 | ₹0Cr | ₹0Cr | 14.4% | 0.96 | 1.35 | 18.7% |
| FY2025 | ₹0Cr | ₹0Cr | 13.2% | 0.92 | 1.36 | 16.4% |
| FY2026 | ₹0Cr | ₹0Cr | 13.6% | 0.89 | 1.36 | 16.4% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.