DuPont Decomposition
Why does NDRAUTO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
17.3% = 7.5% × 1.46 × 1.57
Latest: FY2026
Profitability
Net Margin
7.5%
6.5% →7.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.46x
0.92x →1.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.57x
1.31x →1.57x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 9.5 pp over 5 years. Driven by net margin improving (6.5% → 7.5%), asset turnover improving (0.92x → 1.46x), leverage rising (1.31x → 1.57x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.5% | 0.92 | 1.31 | 7.8% |
| FY2023 | ₹0Cr | ₹0Cr | 7.3% | 1.13 | 1.58 | 12.9% |
| FY2024 | ₹0Cr | ₹0Cr | 6.5% | 1.51 | 1.56 | 15.3% |
| FY2025 | ₹0Cr | ₹0Cr | 7.5% | 1.47 | 1.61 | 17.6% |
| FY2026 | ₹0Cr | ₹0Cr | 7.5% | 1.46 | 1.57 | 17.3% |
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)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.