DuPont Decomposition
Why does SHREYANIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.5% = 1.0% × 0.98 × 1.49
Latest: FY2026
Profitability
Net Margin
1.0%
1.7% →1.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.98x
1.35x →0.98x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.49x
1.86x →1.49x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.8 pp over 5 years. Driven by asset turnover declining (1.35x → 0.98x), leverage falling (1.86x → 1.49x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.7% | 1.35 | 1.86 | 4.3% |
| FY2023 | ₹0Cr | ₹0Cr | 8.5% | 1.79 | 1.60 | 24.3% |
| FY2024 | ₹0Cr | ₹0Cr | 12.5% | 1.25 | 1.46 | 22.8% |
| FY2025 | ₹0Cr | ₹0Cr | 8.2% | 1.00 | 1.44 | 11.9% |
| FY2026 | ₹0Cr | ₹0Cr | 1.0% | 0.98 | 1.49 | 1.5% |
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.