530977.BO WACC - Weighted Average Cost of Capital

The WACC of Shri Keshav Cements and Infra Ltd (530977.BO) is 11.5%.

The Cost of Equity of Shri Keshav Cements and Infra Ltd (530977.BO) is 15.05%.

The Cost of Debt of Shri Keshav Cements and Infra Ltd (530977.BO) is 12.40%.

	Range	Selected
Cost of equity	13.10% - 17.00%	15.05%
Tax rate	36.80% - 48.70%	42.75%
Cost of debt	9.40% - 15.40%	12.40%
WACC	10.0% - 13.1%	11.5%

WACC

530977.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.75	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	17.00%

Tax rate	36.80%	48.70%
Debt/Equity ratio	0.76	0.76
Cost of debt	9.40%	15.40%

After-tax WACC	10.0%	13.1%


Selected WACC	11.5%

530977.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 530977.BO:

cost_of_equity (15.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.75) + 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.