DuPont Decomposition
Why does AJMERA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.7% = 13.7% × 0.42 × 1.85
Latest: FY2026
Profitability
Net Margin
13.7%
9.4% →13.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.42x
0.24x →0.42x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.85x
2.84x →1.85x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.3 pp over 5 years. Driven by net margin improving (9.4% → 13.7%), asset turnover improving (0.24x → 0.42x), leverage falling (2.84x → 1.85x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.4% | 0.24 | 2.84 | 6.4% |
| FY2023 | ₹0Cr | ₹0Cr | 16.6% | 0.22 | 2.48 | 9.2% |
| FY2024 | ₹0Cr | ₹0Cr | 14.7% | 0.36 | 2.27 | 11.9% |
| FY2025 | ₹0Cr | ₹0Cr | 17.1% | 0.33 | 1.87 | 10.4% |
| FY2026 | ₹0Cr | ₹0Cr | 13.7% | 0.42 | 1.85 | 10.7% |
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.