DuPont Decomposition
Why does SAKAR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.4% = 12.1% × 0.52 × 1.48
Latest: FY2026
Profitability
Net Margin
12.1%
11.9% →12.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.52x
0.48x →0.52x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.48x
2.10x →1.48x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.6 pp over 5 years. Driven by leverage falling (2.10x → 1.48x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.9% | 0.48 | 2.10 | 12.0% |
| FY2023 | ₹0Cr | ₹0Cr | 9.6% | 0.40 | 1.94 | 7.4% |
| FY2024 | ₹0Cr | ₹0Cr | 7.6% | 0.39 | 1.48 | 4.5% |
| FY2025 | ₹0Cr | ₹0Cr | 9.9% | 0.43 | 1.45 | 6.1% |
| FY2026 | ₹0Cr | ₹0Cr | 12.1% | 0.52 | 1.48 | 9.4% |
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.