DuPont Decomposition
Why does SAGARDEEP earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
6.4% = 1.5% × 3.12 × 1.33
Latest: FY2025
Profitability
Net Margin
1.5%
0.6% →1.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
3.12x
2.04x →3.12x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.33x
1.69x →1.33x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 4.5 pp over 4 years. Driven by asset turnover improving (2.04x → 3.12x), leverage falling (1.69x → 1.33x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.6% | 2.04 | 1.69 | 2.0% |
| FY2023 | ₹0Cr | ₹0Cr | 0.6% | 2.47 | 1.31 | 2.0% |
| FY2024 | ₹0Cr | ₹0Cr | 0.8% | 2.38 | 1.50 | 2.7% |
| FY2025 | ₹0Cr | ₹0Cr | 1.5% | 3.12 | 1.33 | 6.4% |
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.