NCLIND.NS WACC - Weighted Average Cost of Capital
The WACC of Ncl Industries Ltd (NCLIND.NS) is 15.0%.
| Range | Selected | |
| Cost of equity | 15.5% - 18.8% | 17.15% |
| Tax rate | 35.3% - 35.8% | 35.55% |
| Cost of debt | 7.3% - 8.1% | 7.7% |
| WACC | 13.6% - 16.4% | 15.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.03 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.5% | 18.8% |
| Tax rate | 35.3% | 35.8% |
| Debt/Equity ratio | 0.21 | 0.21 |
| Cost of debt | 7.3% | 8.1% |
| After-tax WACC | 13.6% | 16.4% |
| Selected WACC | 15.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NCLIND.NS | Ncl Industries Ltd | 0.21 | 1.43 | 1.25 |
| 502175.BO | Saurashtra Cement Ltd | 0.05 | 1.26 | 1.22 |
| DECCANCE.NS | Deccan Cements Ltd | 0.48 | 0.99 | 0.76 |
| IFGLEXPOR.NS | IFGL Refractories Ltd | 0.09 | 1.44 | 1.36 |
| MANGLMCEM.NS | Mangalam Cement Ltd | 0.28 | 0.91 | 0.77 |
| RAMCOIND.NS | Ramco Industries Ltd | 0.11 | 1.06 | 0.99 |
| SAGCEM.NS | Sagar Cements Ltd | 0.46 | 1.51 | 1.16 |
| SANGHIIND.NS | Sanghi Industries Ltd | 1.26 | 1.26 | 0.7 |
| SHREDIGCEM.NS | Shree Digvijay Cement Co Ltd | 0.09 | 1.13 | 1.07 |
| VISAKAIND.NS | Visaka Industries Ltd | 0.75 | 1.22 | 0.82 |
| Low | High | |
| Unlevered beta | 0.92 | 1.11 |
| Relevered beta | 1.04 | 1.27 |
| Adjusted relevered beta | 1.03 | 1.18 |
NCLIND.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 NCLIND.NS:
cost_of_equity (17.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.03) + 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.