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
40.0% = 102.5% × 0.27 × 1.45
Latest: FY2026
Profitability
Net Margin
102.5%
229.0% →102.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.27x
1.52x →0.27x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.45x
6.07x →1.45x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2077.3 pp over 3 years. Driven by net margin declining (229.0% → 102.5%), asset turnover declining (1.52x → 0.27x), leverage falling (6.07x → 1.45x).
Historical Decomposition
Last 3 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% |
| FY2026 | ₹0Cr | ₹0Cr | 102.5% | 0.27 | 1.45 | 40.0% |
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.