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
9.2% = 3.9% × 0.93 × 2.57
Latest: FY2025
Profitability
Net Margin
3.9%
8.7% →3.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.93x
1.23x →0.93x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.57x
2.98x →2.57x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 22.5 pp over 4 years. Driven by net margin declining (8.7% → 3.9%), asset turnover declining (1.23x → 0.93x), leverage falling (2.98x → 2.57x).
Historical Decomposition
Last 4 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 | -53.5% | 0.07 | 3.11 | -11.2% |
| FY2025 | ₹0Cr | ₹0Cr | 3.9% | 0.93 | 2.57 | 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.