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
9.1% = 11.2% × 0.70 × 1.15
Latest: FY2026
Profitability
Net Margin
11.2%
20.1% →11.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.70x
0.43x →0.70x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
1.25x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.6 pp over 5 years. Driven by net margin declining (20.1% → 11.2%), asset turnover improving (0.43x → 0.70x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 20.1% | 0.43 | 1.25 | 10.7% |
| FY2023 | ₹0Cr | ₹0Cr | 6.0% | 0.74 | 1.26 | 5.5% |
| FY2024 | ₹0Cr | ₹0Cr | 0.9% | 0.62 | 1.20 | 0.7% |
| FY2025 | ₹0Cr | ₹0Cr | 7.1% | 0.70 | 1.18 | 5.9% |
| FY2026 | ₹0Cr | ₹0Cr | 11.2% | 0.70 | 1.15 | 9.1% |
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.