DuPont Decomposition
Why does KNAGRI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.2% = 1.8% × 4.18 × 1.13
Latest: FY2026
Profitability
Net Margin
1.8%
2.5% →1.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
4.18x
6.43x →4.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.13x
1.15x →1.13x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.3 pp over 5 years. Driven by asset turnover declining (6.43x → 4.18x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.5% | 6.43 | 1.15 | 18.5% |
| FY2023 | ₹0Cr | ₹0Cr | 1.2% | 5.88 | 1.35 | 9.6% |
| FY2024 | ₹0Cr | ₹0Cr | 1.8% | 3.75 | 1.45 | 9.9% |
| FY2025 | ₹0Cr | ₹0Cr | 2.1% | 3.91 | 1.26 | 10.5% |
| FY2026 | ₹0Cr | ₹0Cr | 1.8% | 4.18 | 1.13 | 8.2% |
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.