DuPont Decomposition
Why does AJANTPHARM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
23.3% = 19.4% × 0.89 × 1.36
Latest: FY2026
Profitability
Net Margin
19.4%
21.7% →19.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.89x
0.81x →0.89x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.36x
1.24x →1.36x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.5 pp over 5 years. Driven by net margin declining (21.7% → 19.4%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 21.7% | 0.81 | 1.24 | 21.8% |
| FY2023 | ₹0Cr | ₹0Cr | 15.9% | 0.79 | 1.38 | 17.4% |
| FY2024 | ₹0Cr | ₹0Cr | 19.6% | 0.90 | 1.30 | 22.9% |
| FY2025 | ₹0Cr | ₹0Cr | 19.8% | 0.93 | 1.32 | 24.3% |
| FY2026 | ₹0Cr | ₹0Cr | 19.4% | 0.89 | 1.36 | 23.3% |
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.