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
17.1% = 14.2% × 0.96 × 1.25
Latest: FY2026
Profitability
Net Margin
14.2%
14.3% →14.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.96x
1.11x →0.96x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.25x
1.37x →1.25x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 4.7 pp over 5 years. Driven by asset turnover declining (1.11x → 0.96x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 14.3% | 1.11 | 1.37 | 21.8% |
| FY2023 | ₹0Cr | ₹0Cr | 13.9% | 1.20 | 1.32 | 22.0% |
| FY2024 | ₹0Cr | ₹0Cr | 13.8% | 1.10 | 1.26 | 19.0% |
| FY2025 | ₹0Cr | ₹0Cr | 14.6% | 1.13 | 1.28 | 21.2% |
| FY2026 | ₹0Cr | ₹0Cr | 14.2% | 0.96 | 1.25 | 17.1% |
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.