DuPont Decomposition
Why does ANANTRAJ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.6% = 22.1% × 0.37 × 1.19
Latest: FY2026
Profitability
Net Margin
22.1%
12.2% →22.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.37x
0.11x →0.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.19x
1.66x →1.19x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.4 pp over 5 years. Driven by net margin improving (12.2% → 22.1%), asset turnover improving (0.11x → 0.37x), leverage falling (1.66x → 1.19x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 12.2% | 0.11 | 1.66 | 2.1% |
| FY2023 | ₹0Cr | ₹0Cr | 15.8% | 0.22 | 1.54 | 5.3% |
| FY2024 | ₹0Cr | ₹0Cr | 17.9% | 0.30 | 1.33 | 7.3% |
| FY2025 | ₹0Cr | ₹0Cr | 20.7% | 0.39 | 1.26 | 10.2% |
| FY2026 | ₹0Cr | ₹0Cr | 22.1% | 0.37 | 1.19 | 9.6% |
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.