DuPont Decomposition

Why does SADBHAV earn its ROE?

Breaking down Return on Equity into profitability, efficiency, and leverage.

ROE = Net Margin × Asset Turnover × Equity Multiplier

-175.6% = -33.3% × 0.18 × 29.12

Latest: FY2023

Profitability

Net Margin

-33.3%

-38.1% →-33.3%

How much profit per ₹ of revenue

Efficiency

Asset Turnover

0.18x

0.17x →0.18x

Revenue per ₹ of assets

Leverage

Equity Multiplier

29.12x

10.38x →29.12x

Assets funded by equity vs debt

Trend Analysis

ROE declined by 107.4 pp over 2 years. Driven by net margin improving (-38.1% → -33.3%), leverage rising (10.38x → 29.12x). High financial leverage (equity multiplier > 4x) amplifies returns but also risk.

Historical Decomposition

Last 2 years

YearRevenuePATNet MarginAsset TOLeverageROE
FY2022₹0Cr₹-0Cr-38.1%0.1710.38-68.2%
FY2023₹0Cr₹-0Cr-33.3%0.1829.12-175.6%

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)

See DCF fair value for SADBHAV

Combine financial quality with intrinsic value.

See Fair Value →

DuPont decomposition from audited annual financials. Factual analysis, not investment advice.