KILITCH.NS
Kilitch Drugs (India) Ltd
Price:  
430.45 
INR
Volume:  
50,052
India | Pharmaceuticals

KILITCH.NS WACC - Weighted Average Cost of Capital

The WACC of Kilitch Drugs (India) Ltd (KILITCH.NS) is 15.4%.

The Cost of Equity of Kilitch Drugs (India) Ltd (KILITCH.NS) is 15.75%.
The Cost of Debt of Kilitch Drugs (India) Ltd (KILITCH.NS) is 10.35%.

RangeSelected
Cost of equity14.3% - 17.2%15.75%
Tax rate29.0% - 30.3%29.65%
Cost of debt7.8% - 12.9%10.35%
WACC13.9% - 16.8%15.4%
WACC

KILITCH.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.891
Additional risk adjustments0.0%0.5%
Cost of equity14.3%17.2%
Tax rate29.0%30.3%
Debt/Equity ratio
0.050.05
Cost of debt7.8%12.9%
After-tax WACC13.9%16.8%
Selected WACC15.4%

KILITCH.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 KILITCH.NS:

cost_of_equity (15.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.89) + 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.