DuPont Decomposition
Why does JAGSNPHARM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
15.6% = 15.0% × 0.91 × 1.15
Latest: FY2026
Profitability
Net Margin
15.0%
8.7% →15.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
1.38x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
1.24x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~16%. Driven by net margin improving (8.7% → 15.0%), asset turnover declining (1.38x → 0.91x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.7% | 1.38 | 1.24 | 14.8% |
| FY2023 | ₹0Cr | ₹0Cr | 11.3% | 1.21 | 1.23 | 16.8% |
| FY2024 | ₹0Cr | ₹0Cr | 10.8% | 0.96 | 1.16 | 12.0% |
| FY2025 | ₹0Cr | ₹0Cr | 20.6% | 0.97 | 1.16 | 23.1% |
| FY2026 | ₹0Cr | ₹0Cr | 15.0% | 0.91 | 1.15 | 15.6% |
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.