DuPont Decomposition
Why does PGHH earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
113.7% = 20.0% × 2.37 × 2.39
Latest: FY2026
Profitability
Net Margin
20.0%
18.3% →20.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
2.37x
2.19x →2.37x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.39x
2.29x →2.39x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 22.4 pp over 5 years. Driven by net margin improving (18.3% → 20.0%), asset turnover improving (2.19x → 2.37x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 18.3% | 2.19 | 2.29 | 91.3% |
| FY2023 | ₹0Cr | ₹0Cr | 15.2% | 2.25 | 2.28 | 78.1% |
| FY2024 | ₹0Cr | ₹0Cr | 17.4% | 1.83 | 2.26 | 71.7% |
| FY2025 | ₹0Cr | ₹0Cr | 16.1% | 2.26 | 2.40 | 87.1% |
| FY2026 | ₹0Cr | ₹0Cr | 20.0% | 2.37 | 2.39 | 113.7% |
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.