DuPont Decomposition
Why does BAJAJHIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
3.3% = 2.3% × 0.38 × 3.75
Latest: FY2026
Profitability
Net Margin
2.3%
-4.9% →2.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.38x
0.42x →0.38x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.75x
5.78x →3.75x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 15.2 pp over 5 years. Driven by net margin improving (-4.9% → 2.3%), leverage falling (5.78x → 3.75x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -4.9% | 0.42 | 5.78 | -11.8% |
| FY2023 | ₹0Cr | ₹-0Cr | -2.2% | 0.39 | 3.60 | -3.0% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.4% | 0.38 | 3.55 | -1.9% |
| FY2025 | ₹0Cr | ₹-0Cr | -14.0% | 0.36 | 3.62 | -18.4% |
| FY2026 | ₹0Cr | ₹0Cr | 2.3% | 0.38 | 3.75 | 3.3% |
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)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.