RENUKA.NS
Shree Renuka Sugars Ltd
Price:  
32.94 
INR
Volume:  
2,811,115
India | Food Products

RENUKA.NS WACC - Weighted Average Cost of Capital

The WACC of Shree Renuka Sugars Ltd (RENUKA.NS) is 18.0%.

The Cost of Equity of Shree Renuka Sugars Ltd (RENUKA.NS) is 22.15%.
The Cost of Debt of Shree Renuka Sugars Ltd (RENUKA.NS) is 16.8%.

RangeSelected
Cost of equity20.6% - 23.7%22.15%
Tax rate14.2% - 24.7%19.45%
Cost of debt9.7% - 23.9%16.8%
WACC15.0% - 21.1%18.0%
WACC

RENUKA.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta1.661.7
Additional risk adjustments0.0%0.5%
Cost of equity20.6%23.7%
Tax rate14.2%24.7%
Debt/Equity ratio
0.840.84
Cost of debt9.7%23.9%
After-tax WACC15.0%21.1%
Selected WACC18.0%

RENUKA.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 RENUKA.NS:

cost_of_equity (22.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.66) + 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.