MOHITIND.NS WACC - Weighted Average Cost of Capital

The WACC of Mohit Industries Ltd (MOHITIND.NS) is 11.6%.

The Cost of Equity of Mohit Industries Ltd (MOHITIND.NS) is 24.85%.

The Cost of Debt of Mohit Industries Ltd (MOHITIND.NS) is 6.30%.

	Range	Selected
Cost of equity	21.20% - 28.50%	24.85%
Tax rate	23.70% - 24.90%	24.30%
Cost of debt	5.60% - 7.00%	6.30%
WACC	10.0% - 13.2%	11.6%

WACC

MOHITIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.73	2.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.20%	28.50%

Tax rate	23.70%	24.90%
Debt/Equity ratio	1.93	1.93
Cost of debt	5.60%	7.00%

After-tax WACC	10.0%	13.2%


Selected WACC	11.6%

MOHITIND.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 MOHITIND.NS:

cost_of_equity (24.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.73) + 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.