DuPont Decomposition
Why does KAMOPAINTS earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.0% = 2.5% × 1.00 × 1.60
Latest: FY2025
Profitability
Net Margin
2.5%
-4.3% →2.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.00x
1.18x →1.00x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.60x
2.73x →1.60x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 18.0 pp over 3 years. Driven by net margin improving (-4.3% → 2.5%), asset turnover declining (1.18x → 1.00x), leverage falling (2.73x → 1.60x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -4.3% | 1.18 | 2.73 | -14.0% |
| FY2024 | ₹0Cr | ₹0Cr | 4.8% | 1.08 | 1.70 | 8.7% |
| FY2025 | ₹0Cr | ₹0Cr | 2.5% | 1.00 | 1.60 | 4.0% |
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.