DuPont Decomposition
Why does BIKAJI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
16.1% = 8.8% × 1.31 × 1.39
Latest: FY2026
Profitability
Net Margin
8.8%
4.8% →8.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.31x
1.46x →1.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.39x
1.34x →1.39x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.6 pp over 5 years. Driven by net margin improving (4.8% → 8.8%), asset turnover declining (1.46x → 1.31x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.8% | 1.46 | 1.34 | 9.5% |
| FY2023 | ₹0Cr | ₹0Cr | 7.0% | 1.54 | 1.33 | 14.3% |
| FY2024 | ₹0Cr | ₹0Cr | 11.9% | 1.46 | 1.26 | 21.8% |
| FY2025 | ₹0Cr | ₹0Cr | 7.9% | 1.32 | 1.40 | 14.5% |
| FY2026 | ₹0Cr | ₹0Cr | 8.8% | 1.31 | 1.39 | 16.1% |
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.