DuPont Decomposition
Why does MAXESTATES earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.7% = 7.9% × 0.02 × 5.14
Latest: FY2026
Profitability
Net Margin
7.9%
7.2% →7.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.02x
0.07x →0.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
5.14x
1.68x →5.14x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~1%. Driven by leverage rising (1.68x → 5.14x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 7.2% | 0.07 | 1.68 | 0.8% |
| FY2023 | ₹0Cr | ₹0Cr | 17.7% | 0.05 | 1.84 | 1.6% |
| FY2024 | ₹0Cr | ₹-0Cr | -45.4% | 0.03 | 2.65 | -3.6% |
| FY2025 | ₹0Cr | ₹0Cr | 16.5% | 0.02 | 3.18 | 1.2% |
| FY2026 | ₹0Cr | ₹0Cr | 7.9% | 0.02 | 5.14 | 0.7% |
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.