513460.BO WACC - Weighted Average Cost of Capital

The WACC of Mahalaxmi Seamless Ltd (513460.BO) is 10.9%.

The Cost of Equity of Mahalaxmi Seamless Ltd (513460.BO) is 11.95%.

The Cost of Debt of Mahalaxmi Seamless Ltd (513460.BO) is 9.65%.

	Range	Selected
Cost of equity	10.90% - 13.00%	11.95%
Tax rate	17.80% - 24.40%	21.10%
Cost of debt	7.20% - 12.10%	9.65%
WACC	9.7% - 12.1%	10.9%

WACC

513460.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.48	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	13.00%

Tax rate	17.80%	24.40%
Debt/Equity ratio	0.32	0.32
Cost of debt	7.20%	12.10%

After-tax WACC	9.7%	12.1%


Selected WACC	10.9%

513460.BO's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 513460.BO:

cost_of_equity (11.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.48) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.