DuPont Decomposition
Why does SAMBHV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.5% = 5.9% × 1.17 × 1.96
Latest: FY2026
Profitability
Net Margin
5.9%
8.8% →5.9%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.17x
1.79x →1.17x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.96x
3.07x →1.96x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 34.8 pp over 4 years. Driven by net margin declining (8.8% → 5.9%), asset turnover declining (1.79x → 1.17x), leverage falling (3.07x → 1.96x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.8% | 1.79 | 3.07 | 48.3% |
| FY2023 | ₹0Cr | ₹0Cr | 6.5% | 1.70 | 2.62 | 28.7% |
| FY2024 | ₹0Cr | ₹0Cr | 6.4% | 1.36 | 2.15 | 18.8% |
| FY2026 | ₹0Cr | ₹0Cr | 5.9% | 1.17 | 1.96 | 13.5% |
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.