DuPont Decomposition
Why does SURAJLTD earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
5.4% = 3.6% × 0.91 × 1.64
Latest: FY2026
Profitability
Net Margin
3.6%
0.9% →3.6%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.91x
2.16x →0.91x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.64x
1.71x →1.64x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 2.2 pp over 5 years. Driven by net margin improving (0.9% → 3.6%), asset turnover declining (2.16x → 0.91x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 0.9% | 2.16 | 1.71 | 3.3% |
| FY2023 | ₹0Cr | ₹0Cr | 5.5% | 2.50 | 1.40 | 19.4% |
| FY2024 | ₹0Cr | ₹0Cr | 6.5% | 1.78 | 1.51 | 17.6% |
| FY2025 | ₹0Cr | ₹0Cr | 5.7% | 1.05 | 1.67 | 10.0% |
| FY2026 | ₹0Cr | ₹0Cr | 3.6% | 0.91 | 1.64 | 5.4% |
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.