DuPont Decomposition
Why does MAHSEAMLES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.2% = 15.0% × 0.60 × 1.13
Latest: FY2026
Profitability
Net Margin
15.0%
16.9% →15.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.60x
0.76x →0.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.13x
1.35x →1.13x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.2 pp over 5 years. Driven by net margin declining (16.9% → 15.0%), asset turnover declining (0.76x → 0.60x), leverage falling (1.35x → 1.13x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.9% | 0.76 | 1.35 | 17.4% |
| FY2023 | ₹0Cr | ₹0Cr | 13.7% | 0.95 | 1.23 | 16.0% |
| FY2024 | ₹0Cr | ₹0Cr | 18.1% | 0.80 | 1.15 | 16.6% |
| FY2025 | ₹0Cr | ₹0Cr | 14.8% | 0.75 | 1.11 | 12.3% |
| FY2026 | ₹0Cr | ₹0Cr | 15.0% | 0.60 | 1.13 | 10.2% |
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.