DuPont Decomposition
Why does MAHLOG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.2% = 0.0% × 2.25 × 2.65
Latest: FY2026
Profitability
Net Margin
0.0%
0.5% →0.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.25x
2.01x →2.25x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.65x
4.55x →2.65x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.5 pp over 4 years. Driven by asset turnover improving (2.01x → 2.25x), leverage falling (4.55x → 2.65x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.5% | 2.01 | 4.55 | 4.7% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.0% | 2.22 | 5.03 | -11.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.6% | 2.37 | 5.89 | -8.2% |
| FY2026 | ₹0Cr | ₹0Cr | 0.0% | 2.25 | 2.65 | 0.2% |
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.