DuPont Decomposition
Why does BHAGERIA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.7% = 5.3% × 1.02 × 1.44
Latest: FY2026
Profitability
Net Margin
5.3%
11.8% →5.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.02x
0.92x →1.02x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.44x
1.27x →1.44x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.2 pp over 5 years. Driven by net margin declining (11.8% → 5.3%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 11.8% | 0.92 | 1.27 | 13.9% |
| FY2023 | ₹0Cr | ₹0Cr | 3.0% | 0.79 | 1.25 | 2.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.9% | 0.73 | 1.29 | 3.6% |
| FY2025 | ₹0Cr | ₹0Cr | 6.8% | 0.81 | 1.31 | 7.2% |
| FY2026 | ₹0Cr | ₹0Cr | 5.3% | 1.02 | 1.44 | 7.7% |
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.