DuPont Decomposition
Why does NATCOPHARM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.4% = 34.8% × 0.37 × 1.20
Latest: FY2026
Profitability
Net Margin
34.8%
8.9% →34.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.37x
0.37x →0.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.20x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 11.4 pp over 5 years. Driven by net margin improving (8.9% → 34.8%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.9% | 0.37 | 1.20 | 4.0% |
| FY2023 | ₹0Cr | ₹0Cr | 26.5% | 0.48 | 1.16 | 14.7% |
| FY2024 | ₹0Cr | ₹0Cr | 34.9% | 0.58 | 1.18 | 23.7% |
| FY2025 | ₹0Cr | ₹0Cr | 42.6% | 0.51 | 1.13 | 24.8% |
| FY2026 | ₹0Cr | ₹0Cr | 34.8% | 0.37 | 1.20 | 15.4% |
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.