DuPont Decomposition
Why does SANGHVIMOV earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
13.7% = 20.0% × 0.44 × 1.55
Latest: FY2025
Profitability
Net Margin
20.0%
24.6% →20.0%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.44x
0.41x →0.44x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.55x
1.33x →1.55x
Assets funded by equity vs debt
Trend Analysis
ROE stable at ~14%. Driven by net margin declining (24.6% → 20.0%), leverage rising (1.33x → 1.55x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 24.6% | 0.41 | 1.33 | 13.3% |
| FY2024 | ₹0Cr | ₹0Cr | 30.4% | 0.43 | 1.41 | 18.6% |
| FY2025 | ₹0Cr | ₹0Cr | 20.0% | 0.44 | 1.55 | 13.7% |
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.