KANANIIND.NS WACC - Weighted Average Cost of Capital

The WACC of Kanani Industries Ltd (KANANIIND.NS) is 10.9%.

The Cost of Equity of Kanani Industries Ltd (KANANIIND.NS) is 10.85%.

The Cost of Debt of Kanani Industries Ltd (KANANIIND.NS) is 4.25%.

	Range	Selected
Cost of equity	9.50% - 12.20%	10.85%
Tax rate	7.20% - 8.90%	8.05%
Cost of debt	4.00% - 4.50%	4.25%
WACC	9.5% - 12.2%	10.9%

WACC

KANANIIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.32	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.50%	12.20%

Tax rate	7.20%	8.90%
Debt/Equity ratio	0	0
Cost of debt	4.00%	4.50%

After-tax WACC	9.5%	12.2%


Selected WACC	10.9%

KANANIIND.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 KANANIIND.NS:

cost_of_equity (10.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.32) + 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.