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
16.8% = 13.2% × 1.05 × 1.20
Latest: FY2025
Profitability
Net Margin
13.2%
14.5% →13.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.05x
1.04x →1.05x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.20x
1.17x →1.20x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~17%. Driven by net margin declining (14.5% → 13.2%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 14.5% | 1.04 | 1.17 | 17.6% |
| FY2024 | ₹0Cr | ₹0Cr | 15.8% | 1.00 | 1.18 | 18.7% |
| FY2025 | ₹0Cr | ₹0Cr | 13.2% | 1.05 | 1.20 | 16.8% |
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.