DuPont Decomposition
Why does MAHESHWARI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.0% = 1.9% × 1.59 × 3.05
Latest: FY2025
Profitability
Net Margin
1.9%
1.7% →1.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.59x
2.41x →1.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.05x
2.77x →3.05x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.1 pp over 4 years. Driven by asset turnover declining (2.41x → 1.59x), leverage rising (2.77x → 3.05x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.7% | 2.41 | 2.77 | 11.1% |
| FY2023 | ₹0Cr | ₹0Cr | 1.2% | 2.40 | 2.87 | 8.1% |
| FY2024 | ₹0Cr | ₹0Cr | 1.3% | 1.92 | 3.02 | 7.6% |
| FY2025 | ₹0Cr | ₹0Cr | 1.9% | 1.59 | 3.05 | 9.0% |
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.