DuPont Decomposition
Why does NAHARPOLY earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.9% = 7.1% × 0.70 × 1.18
Latest: FY2025
Profitability
Net Margin
7.1%
2.7% →7.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
0.15x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.18x
1.26x →1.18x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.4 pp over 3 years. Driven by net margin improving (2.7% → 7.1%), asset turnover improving (0.15x → 0.70x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 2.7% | 0.15 | 1.26 | 0.5% |
| FY2024 | ₹0Cr | ₹0Cr | 0.6% | 0.16 | 1.20 | 0.1% |
| FY2025 | ₹0Cr | ₹0Cr | 7.1% | 0.70 | 1.18 | 5.9% |
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.