DuPont Decomposition
Why does SHARDACROP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.7% = 12.9% × 0.91 × 1.84
Latest: FY2026
Profitability
Net Margin
12.9%
9.8% →12.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
0.95x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.84x
1.96x →1.84x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.4 pp over 5 years. Driven by net margin improving (9.8% → 12.9%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.8% | 0.95 | 1.96 | 18.3% |
| FY2023 | ₹0Cr | ₹0Cr | 8.5% | 0.93 | 1.95 | 15.3% |
| FY2024 | ₹0Cr | ₹0Cr | 1.0% | 0.78 | 1.81 | 1.4% |
| FY2025 | ₹0Cr | ₹0Cr | 7.0% | 0.91 | 1.89 | 12.2% |
| FY2026 | ₹0Cr | ₹0Cr | 12.9% | 0.91 | 1.84 | 21.7% |
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.