DuPont Decomposition
Why does SADHNANIQ earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
2.7% = 4.6% × 0.26 × 2.27
Latest: FY2025
Profitability
Net Margin
4.6%
4.8% →4.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.26x
0.34x →0.26x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.27x
2.41x →2.27x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 1.2 pp over 4 years.
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 4.8% | 0.34 | 2.41 | 3.9% |
| FY2023 | ₹0Cr | ₹0Cr | 2.2% | 0.33 | 1.88 | 1.4% |
| FY2024 | ₹0Cr | ₹0Cr | 2.2% | 0.35 | 2.35 | 1.8% |
| FY2025 | ₹0Cr | ₹0Cr | 4.6% | 0.26 | 2.27 | 2.7% |
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.