DuPont Decomposition
Why does SUDARSCHEM earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
0.7% = 0.2% × 1.01 × 2.82
Latest: FY2026
Profitability
Net Margin
0.2%
5.9% →0.2%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
1.01x
0.93x →1.01x
Revenue per ₹ of assets
Leverage
Equity Multiplier
2.82x
2.84x →2.82x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.9 pp over 5 years. Driven by net margin declining (5.9% → 0.2%).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 5.9% | 0.93 | 2.84 | 15.6% |
| FY2023 | ₹0Cr | ₹0Cr | 2.0% | 0.96 | 2.89 | 5.4% |
| FY2024 | ₹0Cr | ₹0Cr | 14.2% | 1.07 | 2.05 | 31.1% |
| FY2025 | ₹0Cr | ₹0Cr | 1.7% | 0.34 | 2.83 | 1.6% |
| FY2026 | ₹0Cr | ₹0Cr | 0.2% | 1.01 | 2.82 | 0.7% |
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.