GINNIFILA.NS WACC - Weighted Average Cost of Capital
The WACC of Ginni Filaments Ltd (GINNIFILA.NS) is 12.0%.
| Range | Selected | |
| Cost of equity | 11.9% - 14.2% | 13.05% |
| Tax rate | 12.0% - 21.5% | 16.75% |
| Cost of debt | 6.6% - 10.5% | 8.55% |
| WACC | 10.8% - 13.2% | 12.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.6 | 0.68 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.9% | 14.2% |
| Tax rate | 12.0% | 21.5% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 6.6% | 10.5% |
| After-tax WACC | 10.8% | 13.2% |
| Selected WACC | 12.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| GINNIFILA.NS | Ginni Filaments Ltd | 0.21 | 1.48 | 1.26 |
| 500223.BO | JCT Ltd | 1.66 | 0.76 | 0.31 |
| 514165.BO | Indian Acrylics Ltd | 1.69 | 0.73 | 0.29 |
| 514470.BO | Winsome Textile Industries Ltd | 1.25 | 0.53 | 0.25 |
| DAMODARIND.NS | Damodar Industries Ltd | 2.16 | 1.05 | 0.36 |
| DCMNVL.NS | DCM Nouvelle Ltd | 0.97 | 1.34 | 0.73 |
| MARALOVER.NS | Maral Overseas Ltd | 1.45 | 0.61 | 0.27 |
| PRECOT.NS | Precot Ltd | 0.44 | 1.05 | 0.76 |
| SUMEETINDS.NS | Sumeet Industries Ltd | 1.02 | 0.75 | 0.4 |
| SUPERHOUSE.NS | Super House Ltd | 0.73 | 0.82 | 0.5 |
| Low | High | |
| Unlevered beta | 0.34 | 0.44 |
| Relevered beta | 0.4 | 0.52 |
| Adjusted relevered beta | 0.6 | 0.68 |
GINNIFILA.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 GINNIFILA.NS:
cost_of_equity (13.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.