MANGLMCEM.NS WACC - Weighted Average Cost of Capital

The WACC of Mangalam Cement Ltd (MANGLMCEM.NS) is 12.4%.

The Cost of Equity of Mangalam Cement Ltd (MANGLMCEM.NS) is 14.55%.

The Cost of Debt of Mangalam Cement Ltd (MANGLMCEM.NS) is 10.30%.

	Range	Selected
Cost of equity	12.90% - 16.20%	14.55%
Tax rate	36.40% - 37.40%	36.90%
Cost of debt	10.00% - 10.60%	10.30%
WACC	11.1% - 13.7%	12.4%

WACC

MANGLMCEM.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.72	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	16.20%

Tax rate	36.40%	37.40%
Debt/Equity ratio	0.36	0.36
Cost of debt	10.00%	10.60%

After-tax WACC	11.1%	13.7%


Selected WACC	12.4%

MANGLMCEM.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 MANGLMCEM.NS:

cost_of_equity (14.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.