DuPont Decomposition
Why does BAJAJHLDNG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.2% = 94.0% × 0.12 × 1.16
Latest: FY2026
Profitability
Net Margin
94.0%
92.8% →94.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.12x
0.08x →0.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.16x
1.25x →1.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.7 pp over 5 years. Driven by net margin improving (92.8% → 94.0%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 92.8% | 0.08 | 1.25 | 9.5% |
| FY2023 | ₹0Cr | ₹0Cr | 93.6% | 0.10 | 1.20 | 11.0% |
| FY2024 | ₹0Cr | ₹0Cr | 94.8% | 0.12 | 1.20 | 13.4% |
| FY2025 | ₹0Cr | ₹0Cr | 93.7% | 0.09 | 1.20 | 10.4% |
| FY2026 | ₹0Cr | ₹0Cr | 94.0% | 0.12 | 1.16 | 13.2% |
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.