DuPont Decomposition
Why does SEJALLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
19.0% = 7.3% × 0.84 × 3.11
Latest: FY2026
Profitability
Net Margin
7.3%
604.1% →7.3%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.84x
0.56x →0.84x
Revenue per ₹ of assets
Leverage
Equity Multiplier
3.11x
7.05x →3.11x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 2372.6 pp over 5 years. Driven by net margin declining (604.1% → 7.2%), asset turnover improving (0.56x → 0.84x), leverage falling (7.05x → 3.11x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 604.1% | 0.56 | 7.05 | 2391.6% |
| FY2023 | ₹0Cr | ₹0Cr | 16.9% | 0.92 | 3.62 | 56.1% |
| FY2024 | ₹0Cr | ₹0Cr | 2.0% | 0.71 | 7.91 | 11.3% |
| FY2025 | ₹0Cr | ₹0Cr | 4.5% | 0.86 | 7.47 | 28.8% |
| FY2026 | ₹0Cr | ₹0Cr | 7.3% | 0.84 | 3.11 | 19.0% |
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.