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
14.1% = 17.2% × 0.46 × 1.79
Latest: FY2026
Profitability
Net Margin
17.2%
8.8% →17.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.46x
0.35x →0.46x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.79x
1.31x →1.79x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 10.1 pp over 5 years. Driven by net margin improving (8.8% → 17.2%), asset turnover improving (0.35x → 0.46x), leverage rising (1.31x → 1.79x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 8.8% | 0.35 | 1.31 | 4.0% |
| 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% |
| FY2026 | ₹0Cr | ₹0Cr | 17.2% | 0.46 | 1.79 | 14.1% |
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.