DALMIASUG.NS
Dalmia Bharat Sugar and Industries Ltd
Price:  
387.55 
INR
Volume:  
149,118
India | Food Products

DALMIASUG.NS WACC - Weighted Average Cost of Capital

The WACC of Dalmia Bharat Sugar and Industries Ltd (DALMIASUG.NS) is 12.5%.

The Cost of Equity of Dalmia Bharat Sugar and Industries Ltd (DALMIASUG.NS) is 15.05%.
The Cost of Debt of Dalmia Bharat Sugar and Industries Ltd (DALMIASUG.NS) is 6.05%.

RangeSelected
Cost of equity13.7% - 16.4%15.05%
Tax rate24.1% - 25.6%24.85%
Cost of debt4.3% - 7.8%6.05%
WACC11.2% - 13.9%12.5%
WACC

DALMIASUG.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.820.91
Additional risk adjustments0.0%0.5%
Cost of equity13.7%16.4%
Tax rate24.1%25.6%
Debt/Equity ratio
0.310.31
Cost of debt4.3%7.8%
After-tax WACC11.2%13.9%
Selected WACC12.5%

DALMIASUG.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 DALMIASUG.NS:

cost_of_equity (15.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.