DuPont Decomposition
Why does ELDEHSG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.1% = 14.7% × 0.16 × 2.64
Latest: FY2026
Profitability
Net Margin
14.7%
41.5% →14.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.16x
0.24x →0.16x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.64x
1.67x →2.64x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 10.4 pp over 5 years. Driven by net margin declining (41.5% → 14.7%), leverage rising (1.67x → 2.64x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 41.5% | 0.24 | 1.67 | 16.5% |
| FY2023 | ₹0Cr | ₹0Cr | 35.1% | 0.23 | 1.61 | 12.9% |
| FY2024 | ₹0Cr | ₹0Cr | 30.4% | 0.17 | 1.82 | 9.1% |
| FY2025 | ₹0Cr | ₹0Cr | 16.1% | 0.16 | 2.14 | 5.6% |
| FY2026 | ₹0Cr | ₹0Cr | 14.7% | 0.16 | 2.64 | 6.1% |
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.