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
23.1% = 40.3% × 0.28 × 2.04
Latest: FY2026
Profitability
Net Margin
40.3%
-24.5% →40.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.28x
0.28x →0.28x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.04x
3.32x →2.04x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 45.6 pp over 3 years. Driven by net margin improving (-24.5% → 40.3%), leverage falling (3.32x → 2.04x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2024 | ₹0Cr | ₹-0Cr | -24.5% | 0.28 | 3.32 | -22.6% |
| FY2025 | ₹0Cr | ₹0Cr | 7.6% | 0.31 | 3.21 | 7.5% |
| FY2026 | ₹0Cr | ₹0Cr | 40.3% | 0.28 | 2.04 | 23.1% |
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.