DuPont Decomposition

Why does BAJAJINDEF earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

13.5% = 19.3% × 0.59 × 1.19

Latest: FY2025

Profitability

Net Margin

19.3%

19.3% →19.3%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.59x

0.59x →0.59x

Revenue per ₹ of assets

Leverage

Equity Multiplier

1.19x

1.19x →1.19x

Assets funded by equity vs debt

Historical Decomposition

Last 1 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY2025₹0Cr₹0Cr19.3%0.591.1913.5%

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)

See DCF fair value for BAJAJINDEF

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DuPont decomposition from audited annual financials. Factual analysis, not investment advice.