DuPont Decomposition
Why does DHANUKA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.2% = 14.8% × 1.12 × 1.28
Latest: FY2025
Profitability
Net Margin
14.8%
13.7% →14.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.12x
1.21x →1.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.28x
1.32x →1.28x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~21%. Driven by net margin improving (13.7% → 14.8%).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 13.7% | 1.21 | 1.32 | 22.0% |
| FY2024 | ₹0Cr | ₹0Cr | 13.6% | 1.11 | 1.26 | 19.0% |
| FY2025 | ₹0Cr | ₹0Cr | 14.8% | 1.12 | 1.28 | 21.2% |
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.