MANGLMCEM.NS WACC - Weighted Average Cost of Capital

The WACC of Mangalam Cement Ltd (MANGLMCEM.NS) is 14.1%.

The Cost of Equity of Mangalam Cement Ltd (MANGLMCEM.NS) is 16.20%.

The Cost of Debt of Mangalam Cement Ltd (MANGLMCEM.NS) is 10.80%.

	Range	Selected
Cost of equity	14.50% - 17.90%	16.20%
Tax rate	35.00% - 36.40%	35.70%
Cost of debt	10.50% - 11.10%	10.80%
WACC	12.8% - 15.5%	14.1%

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	0.92	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.50%	17.90%

Tax rate	35.00%	36.40%
Debt/Equity ratio	0.29	0.29
Cost of debt	10.50%	11.10%

After-tax WACC	12.8%	15.5%


Selected WACC	14.1%

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 (16.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.92) + 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.