BINANIIND.NS WACC - Weighted Average Cost of Capital
The WACC of Binani Industries Ltd (BINANIIND.NS) is 7.9%.
| Range | Selected | |
| Cost of equity | 21.6% - 28.6% | 25.1% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.2% - 8.6% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.77 | 2.23 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 21.6% | 28.6% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 3.9 | 3.9 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.2% | 8.6% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BINANIIND.NS | Binani Industries Ltd | 3.9 | 1.32 | 0.35 |
| IFGLEXPOR.NS | IFGL Refractories Ltd | 0.12 | 1.11 | 1.02 |
| KESORAMIND.NS | Kesoram Industries Ltd | 16.72 | 0.6 | 0.05 |
| MANGLMCEM.NS | Mangalam Cement Ltd | 0.3 | 0.87 | 0.72 |
| NCLIND.NS | Ncl Industries Ltd | 0.24 | 1.23 | 1.05 |
| ORIENTCEM.NS | Orient Cement Ltd | 0.01 | 0.11 | 0.11 |
| RAMCOIND.NS | Ramco Industries Ltd | 0.12 | 0.89 | 0.82 |
| SAGCEM.NS | Sagar Cements Ltd | 0.52 | 1.38 | 1.01 |
| SANGHIIND.NS | Sanghi Industries Ltd | 1.38 | 1.26 | 0.64 |
| VISAKAIND.NS | Visaka Industries Ltd | 1.07 | 0.84 | 0.48 |
| Low | High | |
| Unlevered beta | 0.58 | 0.76 |
| Relevered beta | 2.15 | 2.84 |
| Adjusted relevered beta | 1.77 | 2.23 |
BINANIIND.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 BINANIIND.NS:
cost_of_equity (25.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.77) + 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.