DuPont Decomposition
Why does KAMDHENU earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.2% = 8.1% × 2.03 × 1.16
Latest: FY2025
Profitability
Net Margin
8.1%
4.5% →8.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.03x
1.36x →2.03x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.16x
2.03x →1.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.0 pp over 4 years. Driven by net margin improving (4.5% → 8.1%), asset turnover improving (1.36x → 2.03x), leverage falling (2.03x → 1.16x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.5% | 1.36 | 2.03 | 12.3% |
| FY2023 | ₹0Cr | ₹0Cr | 5.6% | 3.51 | 1.25 | 24.6% |
| FY2024 | ₹0Cr | ₹0Cr | 6.9% | 2.55 | 1.20 | 21.1% |
| FY2025 | ₹0Cr | ₹0Cr | 8.1% | 2.03 | 1.16 | 19.2% |
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.