DuPont Decomposition
Why does CHAMBLFERT earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
18.8% = 9.4% × 1.44 × 1.38
Latest: FY2026
Profitability
Net Margin
9.4%
9.8% →9.4%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.44x
1.21x →1.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
2.08x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 5.7 pp over 5 years. Driven by asset turnover improving (1.21x → 1.44x), leverage falling (2.08x → 1.38x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.8% | 1.21 | 2.08 | 24.5% |
| FY2023 | ₹0Cr | ₹0Cr | 3.7% | 2.17 | 1.81 | 14.6% |
| FY2024 | ₹0Cr | ₹0Cr | 7.1% | 1.56 | 1.58 | 17.5% |
| FY2025 | ₹0Cr | ₹0Cr | 9.9% | 1.46 | 1.31 | 18.9% |
| FY2026 | ₹0Cr | ₹0Cr | 9.4% | 1.44 | 1.38 | 18.8% |
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.