RUCHINFRA.NS WACC - Weighted Average Cost of Capital

The WACC of Ruchi Infrastructure Ltd (RUCHINFRA.NS) is 9.2%.

The Cost of Equity of Ruchi Infrastructure Ltd (RUCHINFRA.NS) is 11.60%.

The Cost of Debt of Ruchi Infrastructure Ltd (RUCHINFRA.NS) is 7.35%.

	Range	Selected
Cost of equity	9.80% - 13.40%	11.60%
Tax rate	18.90% - 38.40%	28.65%
Cost of debt	4.70% - 10.00%	7.35%
WACC	7.6% - 10.8%	9.2%

WACC

RUCHINFRA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.35	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	13.40%

Tax rate	18.90%	38.40%
Debt/Equity ratio	0.57	0.57
Cost of debt	4.70%	10.00%

After-tax WACC	7.6%	10.8%


Selected WACC	9.2%

RUCHINFRA.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 RUCHINFRA.NS:

cost_of_equity (11.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.