DWARKESH.NS WACC - Weighted Average Cost of Capital
The WACC of Dwarikesh Sugar Industries Ltd (DWARKESH.NS) is 11.9%.
| Range | Selected | |
| Cost of equity | 13.8% - 16.5% | 15.15% |
| Tax rate | 26.9% - 29.9% | 28.4% |
| Cost of debt | 5.3% - 10.5% | 7.9% |
| WACC | 10.4% - 13.4% | 11.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.83 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.8% | 16.5% |
| Tax rate | 26.9% | 29.9% |
| Debt/Equity ratio | 0.52 | 0.52 |
| Cost of debt | 5.3% | 10.5% |
| After-tax WACC | 10.4% | 13.4% |
| Selected WACC | 11.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| DWARKESH.NS | Dwarikesh Sugar Industries Ltd | 0.52 | 1.88 | 1.37 |
| 500166.BO | Goodricke Group Ltd | 0.29 | 1.12 | 0.93 |
| 519421.BO | KSE Ltd | 0.03 | 0.56 | 0.55 |
| 531069.BO | Vijay Solvex Ltd | 0.03 | 0.12 | 0.12 |
| DIAMONDYD.NS | Prataap Snacks Ltd | 0.03 | 0.56 | 0.54 |
| MAWANASUG.NS | Mawana Sugars Ltd | 1.43 | 1.36 | 0.68 |
| MCLEODRUSS.NS | McLeod Russel India Ltd | 5.77 | 1.22 | 0.24 |
| RANASUG.NS | Rana Sugars Ltd | 1.68 | 1.38 | 0.63 |
| SIMBHALS.NS | Simbhaoli Sugars Ltd | 15.27 | 1.14 | 0.1 |
| UGARSUGAR.NS | Ugar Sugar Works Ltd | 1.06 | 1.97 | 1.12 |
| Low | High | |
| Unlevered beta | 0.55 | 0.65 |
| Relevered beta | 0.75 | 0.88 |
| Adjusted relevered beta | 0.83 | 0.92 |
DWARKESH.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 DWARKESH.NS:
cost_of_equity (15.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.