DuPont Decomposition
Why does SHAREINDIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.9% = 25.6% × 0.34 × 1.61
Latest: FY2025
Profitability
Net Margin
25.6%
31.4% →25.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.34x
0.19x →0.34x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.61x
1.81x →1.61x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.5 pp over 3 years. Driven by net margin declining (31.4% → 25.6%), asset turnover improving (0.19x → 0.34x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 31.4% | 0.19 | 1.81 | 10.5% |
| FY2024 | ₹0Cr | ₹0Cr | 24.9% | 0.16 | 1.63 | 6.6% |
| FY2025 | ₹0Cr | ₹0Cr | 25.6% | 0.34 | 1.61 | 13.9% |
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.