DuPont Decomposition
Why does UNICHEMLAB earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
9.3% = 11.5% × 0.59 × 1.38
Latest: FY2026
Profitability
Net Margin
11.5%
2.6% →11.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.38x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.38x
1.27x →1.38x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 8.0 pp over 5 years. Driven by net margin improving (2.6% → 11.5%), asset turnover improving (0.38x → 0.59x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 2.6% | 0.38 | 1.27 | 1.3% |
| FY2023 | ₹0Cr | ₹-0Cr | -15.5% | 0.41 | 1.31 | -8.3% |
| FY2024 | ₹0Cr | ₹-0Cr | -5.4% | 0.53 | 1.34 | -3.9% |
| FY2025 | ₹0Cr | ₹0Cr | 6.5% | 0.59 | 1.46 | 5.6% |
| FY2026 | ₹0Cr | ₹0Cr | 11.5% | 0.59 | 1.38 | 9.3% |
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.