DuPont Decomposition
Why does PCJEWELLER earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
8.7% = 21.3% × 0.36 × 1.15
Latest: FY2026
Profitability
Net Margin
21.3%
-24.3% →21.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.36x
0.21x →0.36x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.15x
1.94x →1.15x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 18.8 pp over 5 years. Driven by net margin improving (-24.3% → 21.3%), asset turnover improving (0.21x → 0.36x), leverage falling (1.94x → 1.15x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹-0Cr | -24.3% | 0.21 | 1.94 | -10.1% |
| FY2023 | ₹0Cr | ₹-0Cr | -8.2% | 0.32 | 2.07 | -5.5% |
| FY2024 | ₹0Cr | ₹-0Cr | -104.0% | 0.08 | 2.48 | -21.5% |
| FY2025 | ₹0Cr | ₹0Cr | 25.7% | 0.27 | 1.36 | 9.3% |
| FY2026 | ₹0Cr | ₹0Cr | 21.3% | 0.36 | 1.15 | 8.7% |
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.