KIRIINDUS.NS WACC - Weighted Average Cost of Capital

The WACC of Kiri Industries Ltd (KIRIINDUS.NS) is 21.3%.

The Cost of Equity of Kiri Industries Ltd (KIRIINDUS.NS) is 16.35%.

The Cost of Debt of Kiri Industries Ltd (KIRIINDUS.NS) is 33.55%.

	Range	Selected
Cost of equity	14.10% - 18.60%	16.35%
Tax rate	2.60% - 4.20%	3.40%
Cost of debt	26.90% - 40.20%	33.55%
WACC	17.8% - 24.7%	21.3%

WACC

KIRIINDUS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.87	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	18.60%

Tax rate	2.60%	4.20%
Debt/Equity ratio	0.44	0.44
Cost of debt	26.90%	40.20%

After-tax WACC	17.8%	24.7%


Selected WACC	21.3%

KIRIINDUS.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 KIRIINDUS.NS:

cost_of_equity (16.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.