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
9.0% = 94.8% × 0.09 × 1.04
Latest: FY2025
Profitability
Net Margin
94.8%
1560.9% →94.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.09x
0.00x →0.09x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.04x
1.03x →1.04x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.4 pp over 3 years. Driven by net margin declining (1560.9% → 94.8%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 1560.9% | 0.00 | 1.03 | 2.6% |
| FY2024 | ₹0Cr | ₹0Cr | 224.1% | 0.02 | 1.03 | 4.3% |
| FY2025 | ₹0Cr | ₹0Cr | 94.8% | 0.09 | 1.04 | 9.0% |
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.