DuPont Decomposition
Why does HESTERBIO earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.4% = 16.7% × 0.49 × 1.88
Latest: FY2026
Profitability
Net Margin
16.7%
16.7% →16.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.49x
0.42x →0.49x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.88x
2.16x →1.88x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~15%. Driven by leverage falling (2.16x → 1.88x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 16.7% | 0.42 | 2.16 | 15.1% |
| FY2023 | ₹0Cr | ₹0Cr | 10.0% | 0.40 | 2.40 | 9.5% |
| FY2024 | ₹0Cr | ₹0Cr | 6.2% | 0.46 | 2.27 | 6.5% |
| FY2025 | ₹0Cr | ₹0Cr | 8.8% | 0.48 | 2.08 | 8.8% |
| FY2026 | ₹0Cr | ₹0Cr | 16.7% | 0.49 | 1.88 | 15.4% |
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.