DuPont Decomposition
Why does NILKAMAL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.3% = 3.1% × 1.50 × 1.60
Latest: FY2026
Profitability
Net Margin
3.1%
3.1% →3.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.50x
1.38x →1.50x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.60x
1.63x →1.60x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~7%. Driven by asset turnover improving (1.38x → 1.50x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.1% | 1.38 | 1.63 | 6.9% |
| FY2023 | ₹0Cr | ₹0Cr | 4.3% | 1.49 | 1.58 | 10.2% |
| FY2024 | ₹0Cr | ₹0Cr | 3.9% | 1.43 | 1.58 | 8.7% |
| FY2025 | ₹0Cr | ₹0Cr | 3.2% | 1.30 | 1.71 | 7.2% |
| FY2026 | ₹0Cr | ₹0Cr | 3.1% | 1.50 | 1.60 | 7.3% |
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.