KOTARISUG.NS
Kothari Sugars and Chemicals Ltd
Price:  
37.56 
INR
Volume:  
27,821.00
India | Food Products
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KOTARISUG.NS WACC - Weighted Average Cost of Capital

The WACC of Kothari Sugars and Chemicals Ltd (KOTARISUG.NS) is 14.3%.

The Cost of Equity of Kothari Sugars and Chemicals Ltd (KOTARISUG.NS) is 15.55%.
The Cost of Debt of Kothari Sugars and Chemicals Ltd (KOTARISUG.NS) is 8.30%.

Range Selected
Cost of equity 13.80% - 17.30% 15.55%
Tax rate 21.70% - 26.00% 23.85%
Cost of debt 8.00% - 8.60% 8.30%
WACC 12.8% - 15.8% 14.3%
WACC

KOTARISUG.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.84 1.02
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.80% 17.30%
Tax rate 21.70% 26.00%
Debt/Equity ratio 0.16 0.16
Cost of debt 8.00% 8.60%
After-tax WACC 12.8% 15.8%
Selected WACC 14.3%

KOTARISUG.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 KOTARISUG.NS:

cost_of_equity (15.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.