DuPont Decomposition
Why does BAJEL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.7% = 0.7% × 1.09 × 3.40
Latest: FY2026
Profitability
Net Margin
0.7%
-0.3% →0.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.09x
0.63x →1.09x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.40x
1.68x →3.40x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 3.0 pp over 4 years. Driven by net margin improving (-0.3% → 0.7%), asset turnover improving (0.63x → 1.09x), leverage rising (1.68x → 3.40x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹-0Cr | -0.3% | 0.63 | 1.68 | -0.3% |
| FY2024 | ₹0Cr | ₹0Cr | 0.4% | 0.85 | 2.37 | 0.8% |
| FY2025 | ₹0Cr | ₹0Cr | 0.6% | 1.24 | 3.11 | 2.3% |
| FY2026 | ₹0Cr | ₹0Cr | 0.7% | 1.09 | 3.40 | 2.7% |
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.