DuPont Decomposition
Why does DEEDEV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.7% = 6.8% × 0.59 × 2.16
Latest: FY2026
Profitability
Net Margin
6.8%
1.8% →6.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.54x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.16x
2.05x →2.16x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.7 pp over 5 years. Driven by net margin improving (1.8% → 6.8%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 1.8% | 0.54 | 2.05 | 2.0% |
| FY2023 | ₹0Cr | ₹0Cr | 2.2% | 0.61 | 2.28 | 3.1% |
| FY2024 | ₹0Cr | ₹0Cr | 3.4% | 0.64 | 2.68 | 5.8% |
| FY2025 | ₹0Cr | ₹0Cr | 5.3% | 0.05 | 1.99 | 0.6% |
| FY2026 | ₹0Cr | ₹0Cr | 6.8% | 0.59 | 2.16 | 8.7% |
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.