DuPont Decomposition
Why does BESTAGRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.1% = 0.7% × 0.75 × 2.19
Latest: FY2026
Profitability
Net Margin
0.7%
8.7% →0.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.75x
1.23x →0.75x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.19x
2.98x →2.19x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 30.6 pp over 5 years. Driven by net margin declining (8.7% → 0.7%), asset turnover declining (1.23x → 0.75x), leverage falling (2.98x → 2.19x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.7% | 1.23 | 2.98 | 31.8% |
| FY2023 | ₹0Cr | ₹0Cr | 11.0% | 1.18 | 2.80 | 36.4% |
| FY2024 | ₹0Cr | ₹0Cr | 5.7% | 0.93 | 3.11 | 16.4% |
| FY2025 | ₹0Cr | ₹0Cr | 3.9% | 0.93 | 2.57 | 9.2% |
| FY2026 | ₹0Cr | ₹0Cr | 0.7% | 0.75 | 2.19 | 1.1% |
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.