DuPont Decomposition

Why does NBIFIN earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

0.3% = 64.6% × 0.00 × 1.06

Latest: FY2025

Profitability

Net Margin

64.6%

67.1% →64.6%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.00x

0.01x →0.00x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.06x

1.03x →1.06x

Assets funded by equity vs debt

Trend Analysis

ROE stable at ~0%. Driven by net margin declining (67.1% → 64.6%).

Historical Decomposition

Last 4 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY20220Cr0Cr67.1%0.011.030.4%
FY20230Cr0Cr58.8%0.001.040.1%
FY20240.1Cr0Cr63.4%0.001.040.2%
FY20250Cr0Cr64.6%0.001.060.3%

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)

See DCF fair value for NBIFIN

Combine financial quality with intrinsic value.

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.