DuPont Decomposition
Why does SANGAMIND earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
7.7% = 2.5% × 0.98 × 3.08
Latest: FY2026
Profitability
Net Margin
2.5%
4.9% →2.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.98x
1.23x →0.98x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.08x
2.45x →3.08x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 7.1 pp over 4 years. Driven by net margin declining (4.9% → 2.5%), asset turnover declining (1.23x → 0.98x), leverage rising (2.45x → 3.08x).
Historical Decomposition
Last 4 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 4.9% | 1.23 | 2.45 | 14.8% |
| FY2024 | ₹0Cr | ₹0Cr | 1.6% | 0.93 | 2.77 | 4.2% |
| FY2025 | ₹0Cr | ₹0Cr | 1.1% | 0.97 | 2.94 | 3.2% |
| FY2026 | ₹0Cr | ₹0Cr | 2.5% | 0.98 | 3.08 | 7.7% |
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.