KICL.NS WACC - Weighted Average Cost of Capital
The WACC of Kalyani Investment Company Ltd (KICL.NS) is 8.8%.
| Range | Selected | |
| Cost of equity | 11.6% - 15.9% | 13.75% |
| Tax rate | 24.1% - 25.0% | 24.55% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 7.7% - 9.8% | 8.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.57 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.6% | 15.9% |
| Tax rate | 24.1% | 25.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 7.7% | 9.8% |
| Selected WACC | 8.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KICL.NS | Kalyani Investment Company Ltd | 0.9 | 2.1 | 1.25 |
| 506134.BO | Intellivate Capital Ventures Ltd | 0.39 | -0.82 | -0.63 |
| 511012.BO | Yamini Investments Company Ltd | 0.12 | 0.42 | 0.39 |
| 530577.BO | Ladderup Finance Ltd | 0.23 | 0.3 | 0.25 |
| 531359.BO | Shriram Asset Management Co Ltd | 0 | 0.54 | 0.54 |
| 534732.BO | Intellivate Capital Advisors Ltd | 0.46 | -0.59 | -0.44 |
| 539177.BO | Authum Investment & Infrastructure Ltd | 0.07 | 0.06 | 0.05 |
| 539875.BO | RSD Finance Ltd | 0.16 | 0.15 | 0.13 |
| DHUNINV.NS | Dhunseri Investments Ltd | 0.43 | 1.47 | 1.11 |
| MCDHOLDING.NS | McDowell Holdings Ltd | 0.22 | 1.08 | 0.93 |
| NAHARCAP.NS | Nahar Capital and Financial Services Ltd | 0.01 | 1.4 | 1.39 |
| Low | High | |
| Unlevered beta | 0.25 | 0.54 |
| Relevered beta | 0.36 | 0.79 |
| Adjusted relevered beta | 0.57 | 0.86 |
KICL.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 KICL.NS:
cost_of_equity (13.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.57) + 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.