DuPont Decomposition
Why does SUNDARMFIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.8% = 41.6% × 0.06 × 5.76
Latest: FY2026
Profitability
Net Margin
41.6%
42.2% →41.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.06x
0.06x →0.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
5.76x
5.48x →5.76x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~14%. Driven by leverage rising (5.48x → 5.76x). 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 | 42.2% | 0.06 | 5.48 | 13.3% |
| FY2023 | ₹0Cr | ₹0Cr | 45.0% | 0.05 | 5.65 | 13.4% |
| FY2024 | ₹0Cr | ₹0Cr | 39.6% | 0.06 | 5.80 | 13.0% |
| FY2025 | ₹0Cr | ₹0Cr | 44.8% | 0.06 | 5.71 | 14.2% |
| FY2026 | ₹0Cr | ₹0Cr | 41.6% | 0.06 | 5.76 | 13.8% |
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.