DuPont Decomposition
Why does BALRAMCHIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.2% = 6.0% × 0.75 × 2.03
Latest: FY2026
Profitability
Net Margin
6.0%
9.7% →6.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
1.06x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.03x
1.62x →2.03x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.6 pp over 5 years. Driven by net margin declining (9.7% → 6.0%), asset turnover declining (1.06x → 0.75x), leverage rising (1.62x → 2.03x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.7% | 1.06 | 1.62 | 16.8% |
| FY2023 | ₹0Cr | ₹0Cr | 6.1% | 0.86 | 1.87 | 9.8% |
| FY2024 | ₹0Cr | ₹0Cr | 9.6% | 0.92 | 1.79 | 15.7% |
| FY2025 | ₹0Cr | ₹0Cr | 8.1% | 0.76 | 1.88 | 11.5% |
| FY2026 | ₹0Cr | ₹0Cr | 6.0% | 0.75 | 2.03 | 9.2% |
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.