DuPont Decomposition
Why does PARAGMILK earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
10.7% = 3.5% × 1.67 × 1.81
Latest: FY2026
Profitability
Net Margin
3.5%
-26.1% →3.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.67x
1.46x →1.67x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.81x
2.52x →1.81x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 106.8 pp over 5 years. Driven by net margin improving (-26.1% → 3.5%), asset turnover improving (1.46x → 1.67x), leverage falling (2.52x → 1.81x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -26.1% | 1.46 | 2.52 | -96.1% |
| FY2023 | ₹0Cr | ₹0Cr | 1.9% | 1.71 | 2.06 | 6.6% |
| FY2024 | ₹0Cr | ₹0Cr | 2.9% | 1.63 | 2.07 | 9.9% |
| FY2025 | ₹0Cr | ₹0Cr | 3.5% | 1.69 | 1.99 | 11.6% |
| FY2026 | ₹0Cr | ₹0Cr | 3.5% | 1.67 | 1.81 | 10.7% |
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.