DuPont Decomposition
Why does BAJAJCON earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
25.2% = 16.5% × 1.22 × 1.25
Latest: FY2026
Profitability
Net Margin
16.5%
14.7% →16.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.22x
1.03x →1.22x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.25x
1.17x →1.25x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 7.6 pp over 4 years. Driven by net margin improving (14.7% → 16.5%), asset turnover improving (1.03x → 1.22x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.7% | 1.03 | 1.17 | 17.6% |
| FY2024 | ₹0Cr | ₹0Cr | 16.1% | 0.98 | 1.18 | 18.7% |
| FY2025 | ₹0Cr | ₹0Cr | 13.2% | 1.05 | 1.20 | 16.8% |
| FY2026 | ₹0Cr | ₹0Cr | 16.5% | 1.22 | 1.25 | 25.2% |
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.