KICL.NS
Kalyani Investment Company Ltd
Price:  
5,161.50 
INR
Volume:  
5,161.00
India | Capital Markets
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KICL.NS WACC - Weighted Average Cost of Capital

The WACC of Kalyani Investment Company Ltd (KICL.NS) is 8.8%.

The Cost of Equity of Kalyani Investment Company Ltd (KICL.NS) is 13.75%.
The Cost of Debt of Kalyani Investment Company Ltd (KICL.NS) is 5.00%.

Range Selected
Cost of equity 11.60% - 15.90% 13.75%
Tax rate 24.10% - 25.00% 24.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.7% - 9.8% 8.8%
WACC

KICL.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.57 0.86
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.60% 15.90%
Tax rate 24.10% 25.00%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 7.7% 9.8%
Selected WACC 8.8%

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.