DuPont Decomposition
Why does KALYANKJIL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.4% = 3.8% × 1.73 × 3.28
Latest: FY2026
Profitability
Net Margin
3.8%
2.1% →3.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.73x
1.21x →1.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.28x
2.85x →3.28x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 14.3 pp over 5 years. Driven by net margin improving (2.1% → 3.8%), asset turnover improving (1.21x → 1.73x), leverage rising (2.85x → 3.28x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.1% | 1.21 | 2.85 | 7.2% |
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 1.31 | 2.95 | 11.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 1.44 | 3.06 | 14.3% |
| FY2025 | ₹0Cr | ₹0Cr | 2.9% | 1.66 | 3.15 | 14.9% |
| FY2026 | ₹0Cr | ₹0Cr | 3.8% | 1.73 | 3.28 | 21.4% |
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.