DuPont Decomposition
Why does SANDHAR earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
14.9% = 4.1% × 1.40 × 2.61
Latest: FY2026
Profitability
Net Margin
4.1%
2.4% →4.1%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.40x
1.16x →1.40x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.61x
2.30x →2.61x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.4 pp over 5 years. Driven by net margin improving (2.4% → 4.1%), asset turnover improving (1.16x → 1.40x), leverage rising (2.30x → 2.61x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.4% | 1.16 | 2.30 | 6.5% |
| FY2023 | ₹0Cr | ₹0Cr | 2.5% | 1.33 | 2.34 | 7.9% |
| FY2024 | ₹0Cr | ₹0Cr | 3.2% | 1.43 | 2.39 | 10.8% |
| FY2025 | ₹0Cr | ₹0Cr | 3.6% | 1.39 | 2.45 | 12.4% |
| FY2026 | ₹0Cr | ₹0Cr | 4.1% | 1.40 | 2.61 | 14.9% |
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.