DuPont Decomposition
Why does BSHSL earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
20.4% = 7.8% × 1.36 × 1.94
Latest: FY2026
Profitability
Net Margin
7.8%
5.5% →7.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.36x
1.96x →1.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.94x
2.47x →1.94x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 6.2 pp over 5 years. Driven by net margin improving (5.5% → 7.8%), asset turnover declining (1.96x → 1.36x), leverage falling (2.47x → 1.94x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.5% | 1.96 | 2.47 | 26.6% |
| FY2023 | ₹0Cr | ₹0Cr | 7.4% | 1.72 | 2.36 | 29.8% |
| FY2024 | ₹0Cr | ₹0Cr | 8.7% | 1.58 | 2.07 | 28.4% |
| FY2025 | ₹0Cr | ₹0Cr | 7.4% | 1.62 | 2.12 | 25.2% |
| FY2026 | ₹0Cr | ₹0Cr | 7.8% | 1.36 | 1.94 | 20.4% |
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.