DuPont Decomposition
Why does KAPSTON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.1% = 2.6% × 2.31 × 3.36
Latest: FY2025
Profitability
Net Margin
2.6%
0.9% →2.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.31x
1.67x →2.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.36x
3.03x →3.36x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.4 pp over 4 years. Driven by net margin improving (0.9% → 2.6%), asset turnover improving (1.67x → 2.31x), leverage rising (3.03x → 3.36x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.9% | 1.67 | 3.03 | 4.6% |
| FY2023 | ₹0Cr | ₹0Cr | 1.3% | 2.21 | 3.06 | 8.6% |
| FY2024 | ₹0Cr | ₹0Cr | 2.4% | 2.51 | 2.89 | 17.6% |
| FY2025 | ₹0Cr | ₹0Cr | 2.6% | 2.31 | 3.36 | 20.1% |
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.