DuPont Decomposition
Why does MKPL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.9% = 1.8% × 2.92 × 1.72
Latest: FY2026
Profitability
Net Margin
1.8%
4.0% →1.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.92x
3.01x →2.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.72x
2.19x →1.72x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 17.2 pp over 5 years. Driven by net margin declining (4.0% → 1.8%), leverage falling (2.19x → 1.72x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.0% | 3.01 | 2.19 | 26.2% |
| FY2023 | ₹0Cr | ₹0Cr | 3.5% | 3.05 | 2.07 | 21.9% |
| FY2024 | ₹0Cr | ₹0Cr | 4.6% | 2.55 | 1.58 | 18.4% |
| FY2025 | ₹0Cr | ₹0Cr | 3.1% | 2.05 | 1.88 | 12.1% |
| FY2026 | ₹0Cr | ₹0Cr | 1.8% | 2.92 | 1.72 | 8.9% |
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.