SANGINITA.NS WACC - Weighted Average Cost of Capital

The WACC of Sanginita Chemicals Ltd (SANGINITA.NS) is 12.6%.

The Cost of Equity of Sanginita Chemicals Ltd (SANGINITA.NS) is 16.55%.

The Cost of Debt of Sanginita Chemicals Ltd (SANGINITA.NS) is 11.55%.

	Range	Selected
Cost of equity	14.60% - 18.50%	16.55%
Tax rate	25.50% - 25.80%	25.65%
Cost of debt	7.70% - 15.40%	11.55%
WACC	10.2% - 15.0%	12.6%

WACC

SANGINITA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.93	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	18.50%

Tax rate	25.50%	25.80%
Debt/Equity ratio	0.98	0.98
Cost of debt	7.70%	15.40%

After-tax WACC	10.2%	15.0%


Selected WACC	12.6%

SANGINITA.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 SANGINITA.NS:

cost_of_equity (16.55%) = 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.