541178.BO WACC - Weighted Average Cost of Capital
The WACC of Benara Bearings and Pistons Ltd (541178.BO) is 9.6%.
| Range | Selected | |
| Cost of equity | 17.1% - 22.9% | 20% |
| Tax rate | 24.2% - 26.8% | 25.5% |
| Cost of debt | 4.8% - 7.0% | 5.9% |
| WACC | 8.1% - 11.0% | 9.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.23 | 1.61 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 17.1% | 22.9% |
| Tax rate | 24.2% | 26.8% |
| Debt/Equity ratio | 2.02 | 2.02 |
| Cost of debt | 4.8% | 7.0% |
| After-tax WACC | 8.1% | 11.0% |
| Selected WACC | 9.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 541178.BO | Benara Bearings and Pistons Ltd | 2.02 | 1.4 | 0.57 |
| 500240.BO | Kinetic Engineering Ltd | 0.14 | 1.92 | 1.74 |
| 504786.BO | Investment & Precision Castings Ltd | 0.15 | 0.92 | 0.83 |
| 505893.BO | Hindustan Hardy Ltd | 0.03 | 0.48 | 0.47 |
| 508807.BO | IST Ltd | 0.02 | 0.37 | 0.37 |
| 520141.BO | Sibar Auto Parts Ltd | 0.4 | 0.66 | 0.51 |
| 531727.BO | Menon Pistons Ltd | 0.07 | 0.83 | 0.79 |
| 532933.BO | Porwal Auto Components Ltd | 0.09 | 0.8 | 0.76 |
| REMSONSIND.NS | Remsons Industries Ltd | 0.14 | 1.25 | 1.14 |
| URAVI.NS | Uravi T & Wedge Lamps Ltd | 0.06 | 0.52 | 0.5 |
| Low | High | |
| Unlevered beta | 0.54 | 0.77 |
| Relevered beta | 1.34 | 1.91 |
| Adjusted relevered beta | 1.23 | 1.61 |
541178.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 541178.BO:
cost_of_equity (20.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.23) + 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.