DuPont Decomposition
Why does GODREJPROP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.7% = 36.1% × 0.06 × 4.28
Latest: FY2026
Profitability
Net Margin
36.1%
20.4% →36.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.06x
0.10x →0.06x
Revenue per ₹ of assets
Leverage
Equity Multiplier
4.28x
2.05x →4.28x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 5.6 pp over 5 years. Driven by net margin improving (20.4% → 36.1%), leverage rising (2.05x → 4.28x). 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 | 20.4% | 0.10 | 2.05 | 4.1% |
| FY2023 | ₹0Cr | ₹0Cr | 26.4% | 0.09 | 2.49 | 6.2% |
| FY2024 | ₹0Cr | ₹0Cr | 24.8% | 0.08 | 3.58 | 7.3% |
| FY2025 | ₹0Cr | ₹0Cr | 28.4% | 0.09 | 3.20 | 8.1% |
| FY2026 | ₹0Cr | ₹0Cr | 36.1% | 0.06 | 4.28 | 9.7% |
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.