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%.

	Range	Selected
Cost of equity	13.70% - 16.40%	15.05%
Tax rate	24.10% - 25.60%	24.85%
Cost of debt	4.30% - 7.80%	6.05%
WACC	11.2% - 13.9%	12.5%

WACC

DALMIASUG.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.82	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.70%	16.40%

Tax rate	24.10%	25.60%
Debt/Equity ratio	0.31	0.31
Cost of debt	4.30%	7.80%

After-tax WACC	11.2%	13.9%


Selected WACC	12.5%

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.