DuPont Decomposition
Why does SAMHI earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.5% = 7.6% × 0.31 × 3.21
Latest: FY2025
Profitability
Net Margin
7.6%
4.0% →7.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.31x
0.08x →0.31x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.21x
3.32x →3.21x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 6.4 pp over 2 years. Driven by net margin improving (4.0% → 7.6%), asset turnover improving (0.08x → 0.31x).
Historical Decomposition
Last 2 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0Cr | ₹0Cr | 4.0% | 0.08 | 3.32 | 1.1% |
| FY2025 | ₹0Cr | ₹0Cr | 7.6% | 0.31 | 3.21 | 7.5% |
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.