DuPont Decomposition
Why does JUBLPHARMA earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.6% = 4.8% × 0.53 × 2.19
Latest: FY2026
Profitability
Net Margin
4.8%
6.8% →4.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.53x
0.61x →0.53x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.19x
1.88x →2.19x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2.2 pp over 5 years. Driven by net margin declining (6.8% → 4.8%), leverage rising (1.88x → 2.19x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 6.8% | 0.61 | 1.88 | 7.8% |
| FY2023 | ₹0Cr | ₹-0Cr | -1.0% | 0.56 | 2.07 | -1.1% |
| FY2024 | ₹0Cr | ₹0Cr | 1.2% | 0.58 | 2.13 | 1.4% |
| FY2025 | ₹0Cr | ₹0Cr | 11.7% | 0.56 | 2.04 | 13.4% |
| FY2026 | ₹0Cr | ₹0Cr | 4.8% | 0.53 | 2.19 | 5.6% |
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.