DuPont Decomposition
Why does STYL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.8% = 16.6% × 0.86 × 1.17
Latest: FY2026
Profitability
Net Margin
16.6%
5.6% →16.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.86x
1.18x →0.86x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.17x
3.13x →1.17x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 3.7 pp over 5 years. Driven by net margin improving (5.6% → 16.6%), asset turnover declining (1.18x → 0.86x), leverage falling (3.13x → 1.17x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.6% | 1.18 | 3.13 | 20.6% |
| FY2023 | ₹0Cr | ₹0Cr | 9.4% | 1.46 | 2.70 | 37.3% |
| FY2024 | ₹0Cr | ₹0Cr | 10.9% | 1.62 | 2.21 | 39.0% |
| FY2025 | ₹0Cr | ₹0Cr | 15.2% | 1.26 | 1.82 | 34.8% |
| FY2026 | ₹0Cr | ₹0Cr | 16.6% | 0.86 | 1.17 | 16.8% |
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.