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
2.3% = 0.6% × 1.24 × 3.11
Latest: FY2025
Profitability
Net Margin
0.6%
-0.3% →0.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.24x
0.63x →1.24x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.11x
1.68x →3.11x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.6 pp over 3 years. Driven by asset turnover improving (0.63x → 1.24x), leverage rising (1.68x → 3.11x).
Historical Decomposition
Last 3 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% | 0.87 | 2.37 | 0.8% |
| FY2025 | ₹0Cr | ₹0Cr | 0.6% | 1.24 | 3.11 | 2.3% |
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.