DuPont Decomposition
Why does NAHARCAP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.2% = 200.1% × 0.01 × 1.10
Latest: FY2025
Profitability
Net Margin
200.1%
876.4% →200.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.01x
0.01x →0.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.10x
1.11x →1.10x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 11.3 pp over 4 years. Driven by net margin declining (876.4% → 200.1%).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 876.4% | 0.01 | 1.11 | 14.5% |
| FY2023 | ₹0Cr | ₹0Cr | 444.8% | 0.01 | 1.10 | 7.0% |
| FY2024 | ₹0Cr | ₹0Cr | 52.6% | 0.01 | 1.10 | 0.8% |
| FY2025 | ₹0Cr | ₹0Cr | 200.1% | 0.01 | 1.10 | 3.2% |
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.