DuPont Decomposition
Why does SHANTIGEAR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
23.8% = 16.0% × 1.19 × 1.25
Latest: FY2025
Profitability
Net Margin
16.0%
15.4% →16.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.19x
1.15x →1.19x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.25x
1.25x →1.25x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.6 pp over 3 years.
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 15.4% | 1.15 | 1.25 | 22.2% |
| FY2024 | ₹0Cr | ₹0Cr | 15.6% | 1.19 | 1.28 | 23.8% |
| FY2025 | ₹0Cr | ₹0Cr | 16.0% | 1.19 | 1.25 | 23.8% |
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.