DuPont Decomposition
Why does GODREJAGRO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
122.9% = 4.6% × 1.65 × 16.04
Latest: FY2026
Profitability
Net Margin
4.6%
4.9% →4.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.65x
1.48x →1.65x
Revenue per ₹ of assets
Leverage
Equity Multiplier
16.04x
2.46x →16.04x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 105.2 pp over 5 years. Driven by asset turnover improving (1.48x → 1.65x), leverage rising (2.46x → 16.04x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.9% | 1.48 | 2.46 | 17.8% |
| FY2023 | ₹0Cr | ₹0Cr | 3.3% | 1.70 | 2.35 | 12.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.8% | 1.67 | 2.27 | 14.3% |
| FY2025 | ₹0Cr | ₹0Cr | 4.6% | 1.70 | 2.32 | 18.1% |
| FY2026 | ₹0Cr | ₹0Cr | 4.6% | 1.65 | 16.04 | 122.9% |
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.