DuPont Decomposition
Why does JAINREC earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
22.6% = 3.7% × 2.82 × 2.17
Latest: FY2026
Profitability
Net Margin
3.7%
3.1% →3.7%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.82x
2.78x →2.82x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.17x
9.49x →2.17x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 58.3 pp over 5 years. Driven by leverage falling (9.49x → 2.17x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 3.1% | 2.78 | 9.49 | 80.9% |
| FY2023 | ₹0Cr | ₹0Cr | 3.0% | 2.74 | 5.61 | 46.1% |
| FY2024 | ₹0Cr | ₹0Cr | 3.7% | 2.89 | 4.14 | 44.4% |
| FY2025 | ₹0Cr | ₹0Cr | 3.5% | 3.50 | 2.53 | 30.6% |
| FY2026 | ₹0Cr | ₹0Cr | 3.7% | 2.82 | 2.17 | 22.6% |
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.