DuPont Decomposition
Why does VALIANTORG earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
4.4% = 4.5% × 0.60 × 1.62
Latest: FY2026
Profitability
Net Margin
4.5%
9.8% →4.5%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.60x
0.97x →0.60x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.62x
1.94x →1.62x
Assets funded by equity vs debt
Trend Analysis
ROE declined by 14.1 pp over 5 years. Driven by net margin declining (9.8% → 4.5%), asset turnover declining (0.97x → 0.60x), leverage falling (1.94x → 1.62x).
Historical Decomposition
Last 5 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2022 | ₹0Cr | ₹0Cr | 9.8% | 0.97 | 1.94 | 18.5% |
| FY2023 | ₹0Cr | ₹0Cr | 8.4% | 0.85 | 1.80 | 12.8% |
| FY2024 | ₹0Cr | ₹-0Cr | -1.2% | 0.58 | 1.71 | -1.1% |
| FY2025 | ₹0Cr | ₹-0Cr | -0.5% | 0.61 | 1.63 | -0.5% |
| FY2026 | ₹0Cr | ₹0Cr | 4.5% | 0.60 | 1.62 | 4.4% |
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.