DuPont Decomposition
Why does SHYAMMETL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.3% = 5.8% × 0.92 × 1.74
Latest: FY2026
Profitability
Net Margin
5.8%
16.6% →5.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.92x
1.23x →0.92x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.74x
1.44x →1.74x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 20.3 pp over 5 years. Driven by net margin declining (16.6% → 5.8%), asset turnover declining (1.23x → 0.92x), leverage rising (1.44x → 1.74x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.6% | 1.23 | 1.44 | 29.6% |
| FY2023 | ₹0Cr | ₹0Cr | 6.8% | 1.08 | 1.60 | 11.7% |
| FY2024 | ₹0Cr | ₹0Cr | 7.9% | 0.91 | 1.50 | 10.7% |
| FY2025 | ₹0Cr | ₹0Cr | 6.0% | 0.93 | 1.55 | 8.6% |
| FY2026 | ₹0Cr | ₹0Cr | 5.8% | 0.92 | 1.74 | 9.3% |
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.