DuPont Decomposition
Why does BODALCHEM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
1.7% = 1.1% × 0.73 × 2.13
Latest: FY2025
Profitability
Net Margin
1.1%
0.7% →1.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.73x
0.18x →0.73x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.13x
1.97x →2.13x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 1.4 pp over 3 years. Driven by asset turnover improving (0.18x → 0.73x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 0.7% | 0.18 | 1.97 | 0.3% |
| FY2024 | ₹0Cr | ₹0Cr | 1.2% | 0.17 | 2.06 | 0.4% |
| FY2025 | ₹0Cr | ₹0Cr | 1.1% | 0.73 | 2.13 | 1.7% |
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.