MUKANDENGG.NS WACC - Weighted Average Cost of Capital
The WACC of Mukand Engineers Ltd (MUKANDENGG.NS) is 9.8%.
| Range | Selected | |
| Cost of equity | 14.8% - 20.0% | 17.4% |
| Tax rate | 0.8% - 1.6% | 1.2% |
| Cost of debt | 7.0% - 8.4% | 7.7% |
| WACC | 8.7% - 10.8% | 9.8% |
| Category | Low | High |
| Long-term bond rate | 7.5% | 8.0% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 1.05 | 1.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.8% | 20.0% |
| Tax rate | 0.8% | 1.6% |
| Debt/Equity ratio | 3.55 | 3.55 |
| Cost of debt | 7.0% | 8.4% |
| After-tax WACC | 8.7% | 10.8% |
| Selected WACC | 9.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MUKANDENGG.NS | Mukand Engineers Ltd | 3.55 | 1.35 | 0.3 |
| 531343.BO | India Infraspace Ltd | 1.9 | -0.19 | -0.06 |
| 531444.BO | Vardhman Concrete Ltd | 1.76 | 0.93 | 0.34 |
| 531540.BO | Maruti Infrastructure Ltd | 0.12 | 0.75 | 0.67 |
| 531900.BO | CCL International Ltd | 0.54 | 1.27 | 0.83 |
| 537840.BO | Raunaq Epc International Ltd | 1.01 | 0.63 | 0.31 |
| 540147.BO | Shashijit Infraprojects Ltd | 2.36 | 0.42 | 0.13 |
| KAUSHALYA.NS | Kaushalya Infrastructure Development Corporation Ltd | 0.88 | 0.95 | 0.51 |
| PBAINFRA.NS | PBA Infrastructure Ltd | 21.75 | 0.54 | 0.02 |
| SKIL.NS | Skil Infrastructure Ltd | 30.18 | -0.06 | 0 |
| Low | High | |
| Unlevered beta | 0.23 | 0.32 |
| Relevered beta | 1.07 | 1.67 |
| Adjusted relevered beta | 1.05 | 1.45 |
MUKANDENGG.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 MUKANDENGG.NS:
cost_of_equity (17.40%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (1.05) + 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.