DuPont Decomposition
Why does SHEKHAWATI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
47.6% = 12.9% × 1.28 × 2.89
Latest: FY2025
Profitability
Net Margin
12.9%
229.0% →12.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.28x
1.52x →1.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.89x
6.07x →2.89x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2069.8 pp over 2 years. Driven by net margin declining (229.0% → 12.9%), asset turnover declining (1.52x → 1.28x), leverage falling (6.07x → 2.89x).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0Cr | ₹0Cr | 229.0% | 1.52 | 6.07 | 2117.4% |
| FY2025 | ₹0Cr | ₹0Cr | 12.9% | 1.28 | 2.89 | 47.6% |
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.