JOCIL.NS WACC - Weighted Average Cost of Capital
The WACC of Jocil Ltd (JOCIL.NS) is 15.3%.
| Range | Selected | |
| Cost of equity | 13.4% - 17.7% | 15.55% |
| Tax rate | 24.0% - 27.1% | 25.55% |
| Cost of debt | 7.8% - 16.5% | 12.15% |
| WACC | 13.1% - 17.5% | 15.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.79 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.4% | 17.7% |
| Tax rate | 24.0% | 27.1% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 7.8% | 16.5% |
| After-tax WACC | 13.1% | 17.5% |
| Selected WACC | 15.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JOCIL.NS | Jocil Ltd | 0.04 | 1.96 | 1.9 |
| 500449.BO | Hindustan Organic Chemicals Ltd | 3.9 | 1.1 | 0.28 |
| 506248.BO | Amines and Plasticizers Ltd | 0.1 | 1.29 | 1.2 |
| 506852.BO | Punjab Alkalies and Chemicals Ltd | 0.3 | 0.41 | 0.34 |
| 509486.BO | Caprihans (India) Ltd | 4.35 | 1.23 | 0.29 |
| 526159.BO | Nikhil Adhesives Ltd | 0.14 | 1.2 | 1.09 |
| 526731.BO | Bright Brothers Ltd | 0.26 | 0.82 | 0.69 |
| 539195.BO | Pocl Enterprises Ltd | 0.17 | 1.67 | 1.48 |
| NAHARPOLY.NS | Nahar Poly Films Ltd | 0.25 | 0.73 | 0.62 |
| TEXMOPIPES.NS | Texmo Pipes and Products Ltd | 0.36 | 1.3 | 1.03 |
| Low | High | |
| Unlevered beta | 0.66 | 1.05 |
| Relevered beta | 0.69 | 1.09 |
| Adjusted relevered beta | 0.79 | 1.06 |
JOCIL.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 JOCIL.NS:
cost_of_equity (15.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.79) + 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.