KILITCH.NS WACC - Weighted Average Cost of Capital
The WACC of Kilitch Drugs (India) Ltd (KILITCH.NS) is 14.0%.
| Range | Selected | |
| Cost of equity | 12.6% - 16.3% | 14.45% |
| Tax rate | 30.6% - 32.8% | 31.7% |
| Cost of debt | 7.9% - 8.2% | 8.05% |
| WACC | 12.3% - 15.8% | 14.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.69 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.6% | 16.3% |
| Tax rate | 30.6% | 32.8% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 7.9% | 8.2% |
| After-tax WACC | 12.3% | 15.8% |
| Selected WACC | 14.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| KILITCH.NS | Kilitch Drugs (India) Ltd | 0.05 | 0.93 | 0.9 |
| 506919.BO | Makers Laboratories Ltd | 0.16 | 2.07 | 1.85 |
| 524654.BO | Natural Capsules Ltd | 0.54 | 1.18 | 0.86 |
| 524711.BO | Vista Pharmaceuticals Ltd | 0.11 | 0.54 | 0.5 |
| 530233.BO | Auro Laboratories Ltd | 0.16 | 0.9 | 0.81 |
| 530477.BO | Vikram Thermo (India) Ltd | 0.01 | 0.53 | 0.53 |
| 538965.BO | Concord Drugs Ltd | 0.54 | 0.52 | 0.38 |
| 542678.BO | Cian Healthcare Ltd | 5.83 | 0.45 | 0.09 |
| LYKALABS.NS | Lyka Labs Ltd | 0.14 | 1.3 | 1.19 |
| PDPL.NS | Parenteral Drugs (India) Ltd | 12.4 | 0.38 | 0.04 |
| Low | High | |
| Unlevered beta | 0.52 | 0.83 |
| Relevered beta | 0.54 | 0.85 |
| Adjusted relevered beta | 0.69 | 0.9 |
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 (14.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.69) + 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.