DuPont Decomposition
Why does SHOPERSTOP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
-12.4% = -0.7% × 0.80 × 21.62
Latest: FY2026
Profitability
Net Margin
-0.7%
-2.0% →-0.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.80x
0.62x →0.80x
Revenue per ₹ of assets
Leverage
Equity Multiplier
21.62x
49.82x →21.62x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 49.5 pp over 5 years. Driven by net margin improving (-2.0% → -0.7%), asset turnover improving (0.62x → 0.80x), leverage falling (49.82x → 21.62x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -2.0% | 0.62 | 49.82 | -61.9% |
| FY2023 | ₹0Cr | ₹0Cr | 3.1% | 0.81 | 22.34 | 56.3% |
| FY2024 | ₹0Cr | ₹0Cr | 1.9% | 0.76 | 17.56 | 25.6% |
| FY2025 | ₹0Cr | ₹0Cr | 0.2% | 0.76 | 18.97 | 3.4% |
| FY2026 | ₹0Cr | ₹-0Cr | -0.7% | 0.80 | 21.62 | -12.4% |
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.