531744.BO WACC - Weighted Average Cost of Capital
The WACC of Gini Silk Mills Ltd (531744.BO) is 11.5%.
| Range | Selected | |
| Cost of equity | 9.6% - 14.3% | 11.95% |
| Tax rate | 15.8% - 18.3% | 17.05% |
| Cost of debt | 5.7% - 7.6% | 6.65% |
| WACC | 9.2% - 13.8% | 11.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.32 | 0.69 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.6% | 14.3% |
| Tax rate | 15.8% | 18.3% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 5.7% | 7.6% |
| After-tax WACC | 9.2% | 13.8% |
| Selected WACC | 11.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 531744.BO | Gini Silk Mills Ltd | 0.08 | -0.13 | -0.12 |
| 514010.BO | Himachal Fibres Ltd | 0.01 | 0.72 | 0.71 |
| 514266.BO | Zenith Fibres Ltd | 0 | 0.79 | 0.79 |
| 521242.BO | Kandagiri Spinning Millis Ltd | 1.04 | -0.52 | -0.28 |
| 526851.BO | Arex Industries Ltd | 0.23 | 0.45 | 0.38 |
| 531411.BO | Tuni Textile Mills Ltd | 0.91 | -0.03 | -0.02 |
| 542019.BO | Shubham Polyspin Ltd | 0.21 | 0.89 | 0.76 |
| EUROTEXIND.NS | Eurotex Industries and Exports Ltd | 3.05 | -0.79 | -0.23 |
| SOMATEX.NS | Soma Textiles & Industries Ltd | 0.02 | 0.84 | 0.83 |
| Low | High | |
| Unlevered beta | 0.06 | 0.64 |
| Relevered beta | -0.01 | 0.54 |
| Adjusted relevered beta | 0.32 | 0.69 |
531744.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 531744.BO:
cost_of_equity (11.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.32) + 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.