ADHUNIKIND.NS WACC - Weighted Average Cost of Capital

The WACC of Adhunik Industries Ltd (ADHUNIKIND.NS) is 13.2%.

The Cost of Equity of Adhunik Industries Ltd (ADHUNIKIND.NS) is 13.25%.

The Cost of Debt of Adhunik Industries Ltd (ADHUNIKIND.NS) is 18.30%.

	Range	Selected
Cost of equity	11.80% - 14.70%	13.25%
Tax rate	29.50% - 31.70%	30.60%
Cost of debt	16.00% - 20.60%	18.30%
WACC	11.7% - 14.6%	13.2%

WACC

ADHUNIKIND.NS WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.62	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	14.70%

Tax rate	29.50%	31.70%
Debt/Equity ratio	0.17	0.17
Cost of debt	16.00%	20.60%

After-tax WACC	11.7%	14.6%


Selected WACC	13.2%

ADHUNIKIND.NS'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 ADHUNIKIND.NS:

cost_of_equity (13.25%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.62) + 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.