DuPont Decomposition
Why does MSTCLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
24.2% = 59.1% × 0.18 × 2.22
Latest: FY2026
Profitability
Net Margin
59.1%
46.6% →59.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.18x
0.21x →0.18x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.22x
3.08x →2.22x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.3 pp over 5 years. Driven by net margin improving (46.6% → 59.1%), leverage falling (3.08x → 2.22x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 46.6% | 0.21 | 3.08 | 30.4% |
| FY2023 | ₹0Cr | ₹0Cr | 83.1% | 0.11 | 3.42 | 30.8% |
| FY2024 | ₹0Cr | ₹0Cr | 58.5% | 0.15 | 2.82 | 25.5% |
| FY2025 | ₹0Cr | ₹0Cr | 130.9% | 0.15 | 2.87 | 55.1% |
| FY2026 | ₹0Cr | ₹0Cr | 59.1% | 0.18 | 2.22 | 24.2% |
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.