DuPont Decomposition

Why does AUBANK earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

12.3% = 20.0% × 0.07 × 9.20

Latest: FY2025

Profitability

Net Margin

20.0%

20.0% →20.0%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.07x

0.07x →0.07x

Revenue per ₹ of assets

Leverage

Equity Multiplier

9.20x

9.20x →9.20x

Assets funded by equity vs debt

Historical Decomposition

Last 1 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY2025₹0Cr₹0Cr20.0%0.079.2012.3%

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)

See DCF fair value for AUBANK

Combine financial quality with intrinsic value.

See Fair Value →

DuPont decomposition from audited annual financials. Factual analysis, not investment advice.