NILKAMAL.NS WACC - Weighted Average Cost of Capital
The WACC of Nilkamal Ltd (NILKAMAL.NS) is 15.2%.
| Range | Selected | |
| Cost of equity | 14.6% - 18.2% | 16.4% |
| Tax rate | 23.8% - 24.0% | 23.9% |
| Cost of debt | 8.1% - 10.9% | 9.5% |
| WACC | 13.5% - 16.9% | 15.2% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.93 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.6% | 18.2% |
| Tax rate | 23.8% | 24.0% |
| Debt/Equity ratio | 0.15 | 0.15 |
| Cost of debt | 8.1% | 10.9% |
| After-tax WACC | 13.5% | 16.9% |
| Selected WACC | 15.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NILKAMAL.NS | Nilkamal Ltd | 0.15 | 0.5 | 0.45 |
| 515147.BO | Haldyn Glass Ltd | 0.21 | 1.01 | 0.87 |
| 530315.BO | Hindustan Tin Works Ltd | 0.53 | 1.34 | 0.95 |
| EPL.NS | EPL Ltd | 0.12 | 1.28 | 1.17 |
| HINDNATGLS.NS | Hindusthan National Glass And Industries Ltd | 14.06 | 1.5 | 0.13 |
| HITECHCORP.NS | Hitech Corporation Ltd | 0.24 | 1.51 | 1.28 |
| KANPRPLA.NS | Kanpur Plastipack Ltd | 0.53 | 0.72 | 0.51 |
| MOLDTKPAC.NS | Mold-Tek Packaging Ltd | 0.07 | 0.73 | 0.7 |
| TIMETECHNO.NS | Time Technoplast Ltd | 0.1 | 1.5 | 1.39 |
| TPLPLASTEH.NS | TPL Plastech Ltd | 0.05 | 1.55 | 1.49 |
| Low | High | |
| Unlevered beta | 0.8 | 1.04 |
| Relevered beta | 0.9 | 1.16 |
| Adjusted relevered beta | 0.93 | 1.11 |
NILKAMAL.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 NILKAMAL.NS:
cost_of_equity (16.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.