532766.BO WACC - Weighted Average Cost of Capital
The WACC of Richa Industries Ltd (532766.BO) is 11.4%.
| Range | Selected | |
| Cost of equity | 28.0% - 101.8% | 64.9% |
| Tax rate | 1.8% - 10.3% | 6.05% |
| Cost of debt | 7.0% - 15.3% | 11.15% |
| WACC | 7.3% - 15.4% | 11.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 3.05 | 11.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 28.0% | 101.8% |
| Tax rate | 1.8% | 10.3% |
| Debt/Equity ratio | 50.09 | 50.09 |
| Cost of debt | 7.0% | 15.3% |
| After-tax WACC | 7.3% | 15.4% |
| Selected WACC | 11.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 532766.BO | Richa Industries Ltd | 50.09 | 0.2 | 0 |
| 537259.BO | Suyog Telematics Ltd | 0.09 | -0.05 | -0.04 |
| 8526.HK | Wing Fung Group Asia Ltd | 1.18 | 0.77 | 0.36 |
| ARSSINFRA.NS | ARSS Infrastructure Projects Ltd | 16.85 | 0.59 | 0.03 |
| JYOTISTRUC.NS | Jyoti Structures Ltd | 0.95 | 1.96 | 1.02 |
| MANINDS.NS | Man Industries India Ltd | 0.19 | 1.88 | 1.58 |
| SALASAR.NS | Salasar Techno Engineering Ltd | 0.25 | 0.9 | 0.72 |
| SKIPPER.NS | Skipper Ltd | 0.15 | 1.75 | 1.53 |
| TANTIACONS.NS | Tantia Constructions Ltd | 10.81 | 0.17 | 0.01 |
| VOLTAS.NS | Voltas Ltd | 0.02 | 1.25 | 1.23 |
| Low | High | |
| Unlevered beta | 0.23 | 0.84 |
| Relevered beta | 4.06 | 17.19 |
| Adjusted relevered beta | 3.05 | 11.85 |
532766.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 532766.BO:
cost_of_equity (64.90%) = risk_free_rate (7.15%) + equity_risk_premium (7.40%) * adjusted_beta (3.05) + 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.