DuPont Decomposition
Why does HINDCOMPOS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.7% = 8.3% × 0.30 × 1.10
Latest: FY2026
Profitability
Net Margin
8.3%
9.3% →8.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.30x
0.23x →0.30x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.10x
1.09x →1.10x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~3%.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.3% | 0.23 | 1.09 | 2.4% |
| FY2023 | ₹0Cr | ₹0Cr | 9.7% | 0.28 | 1.09 | 3.0% |
| FY2024 | ₹0Cr | ₹0Cr | 11.6% | 0.27 | 1.10 | 3.5% |
| FY2025 | ₹0Cr | ₹0Cr | 10.8% | 0.27 | 1.10 | 3.2% |
| FY2026 | ₹0Cr | ₹0Cr | 8.3% | 0.30 | 1.10 | 2.7% |
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.