MANAKCOAT.NS WACC - Weighted Average Cost of Capital
The WACC of Manaksia Coated Metals & Industries Ltd (MANAKCOAT.NS) is 14.2%.
| Range | Selected | |
| Cost of equity | 13.5% - 17.0% | 15.25% |
| Tax rate | 23.5% - 24.5% | 24% |
| Cost of debt | 12.1% - 14.8% | 13.45% |
| WACC | 12.6% - 15.8% | 14.2% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.8 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.5% | 17.0% |
| Tax rate | 23.5% | 24.5% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 12.1% | 14.8% |
| After-tax WACC | 12.6% | 15.8% |
| Selected WACC | 14.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MANAKCOAT.NS | Manaksia Coated Metals & Industries Ltd | 0.26 | 0.87 | 0.73 |
| 513548.BO | Sharda Ispat Ltd | 0.13 | 0.09 | 0.08 |
| 521105.BO | Olympia Industries Ltd | 2.01 | 0.33 | 0.13 |
| 530741.BO | Ovobel Foods Ltd | 0.25 | 0.44 | 0.37 |
| 531503.BO | Maris Spinners Ltd | 2.79 | 0.97 | 0.31 |
| 539151.BO | Arfin India Ltd | 0.25 | 1.47 | 1.24 |
| LAXMICOT.NS | Laxmi Cotspin Ltd | 1.05 | 1.45 | 0.81 |
| LSIL.NS | Lloyds Steels Industries Ltd | 0.01 | 1.16 | 1.15 |
| MKPL.NS | M K Proteins Ltd | 0.08 | 0.87 | 0.82 |
| SHANTI.NS | Shanti Overseas India Ltd | 0.04 | 1.44 | 1.39 |
| Low | High | |
| Unlevered beta | 0.59 | 0.81 |
| Relevered beta | 0.7 | 0.97 |
| Adjusted relevered beta | 0.8 | 0.98 |
MANAKCOAT.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 MANAKCOAT.NS:
cost_of_equity (15.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.