KAMDHENU.NS WACC - Weighted Average Cost of Capital
The WACC of Kamdhenu Ltd (KAMDHENU.NS) is 16.3%.
| Range | Selected | |
| Cost of equity | 14.9% - 17.7% | 16.3% |
| Tax rate | 25.2% - 26.4% | 25.8% |
| Cost of debt | 7.5% - 9.1% | 8.3% |
| WACC | 14.8% - 17.7% | 16.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.96 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.9% | 17.7% |
| Tax rate | 25.2% | 26.4% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.5% | 9.1% |
| After-tax WACC | 14.8% | 17.7% |
| Selected WACC | 16.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KAMDHENU.NS | Kamdhenu Ltd | 0 | 1.45 | 1.45 |
| 511672.BO | Scan Steels Ltd | 0.52 | -0.06 | -0.05 |
| 539018.BO | Beekay Steel Industries Ltd | 0.24 | 1.06 | 0.91 |
| GALLANTT.NS | Gallantt Metal Ltd | 0.04 | 1.37 | 1.33 |
| GALLISPAT.NS | Gallantt Ispat Ltd | 0.18 | 1.09 | 0.97 |
| HITECH.NS | Hi-Tech Pipes Ltd | 0.21 | 1.67 | 1.44 |
| ROHITFERRO.NS | Rohit Ferro-Tech Ltd | 8.1 | 1.69 | 0.24 |
| STEELXIND.NS | Steel Exchange India Ltd | 0.39 | 1.37 | 1.06 |
| VISASTEEL.NS | Visa Steel Ltd | 3.7 | -0.37 | -0.1 |
| VSSL.NS | Vardhman Special Steels Ltd | 0.06 | 1.17 | 1.13 |
| Low | High | |
| Unlevered beta | 0.94 | 1.09 |
| Relevered beta | 0.94 | 1.09 |
| Adjusted relevered beta | 0.96 | 1.06 |
KAMDHENU.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 KAMDHENU.NS:
cost_of_equity (16.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.96) + 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.