DuPont Decomposition
Why does MAXIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-29.8% = -63.9% × 0.28 × 1.64
Latest: FY2026
Profitability
Net Margin
-63.9%
-8.6% →-63.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.28x
0.22x →0.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.34x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 27.3 pp over 5 years. Driven by net margin declining (-8.6% → -63.9%), leverage rising (1.34x → 1.64x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -8.6% | 0.22 | 1.34 | -2.5% |
| FY2023 | ₹0Cr | ₹-0Cr | -5.2% | 0.27 | 1.39 | -1.9% |
| FY2024 | ₹0Cr | ₹-0Cr | -32.1% | 0.26 | 1.39 | -11.4% |
| FY2025 | ₹0Cr | ₹-0Cr | -96.5% | 0.23 | 1.76 | -39.1% |
| FY2026 | ₹0Cr | ₹-0Cr | -63.9% | 0.28 | 1.64 | -29.8% |
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.