DuPont Decomposition
Why does GANDHAR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.0% = 3.2% × 1.91 × 1.65
Latest: FY2026
Profitability
Net Margin
3.2%
5.0% →3.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.91x
2.57x →1.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.65x
2.44x →1.65x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 21.0 pp over 5 years. Driven by net margin declining (5.0% → 3.2%), asset turnover declining (2.57x → 1.91x), leverage falling (2.44x → 1.65x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.0% | 2.57 | 2.44 | 31.1% |
| FY2023 | ₹0Cr | ₹0Cr | 4.7% | 2.50 | 2.19 | 25.7% |
| FY2024 | ₹0Cr | ₹0Cr | 3.4% | 2.12 | 1.65 | 12.0% |
| FY2025 | ₹0Cr | ₹0Cr | 2.0% | 1.99 | 1.58 | 6.5% |
| FY2026 | ₹0Cr | ₹0Cr | 3.2% | 1.91 | 1.65 | 10.0% |
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.