SANWARIA.NS WACC - Weighted Average Cost of Capital
The WACC of Sanwaria Consumer Ltd (SANWARIA.NS) is 6.7%.
| Range | Selected | |
| Cost of equity | 47.5% - 79.1% | 63.3% |
| Tax rate | 11.5% - 12.6% | 12.05% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.1% - 7.3% | 6.7% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 4.89 | 7.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 47.5% | 79.1% |
| Tax rate | 11.5% | 12.6% |
| Debt/Equity ratio | 24.93 | 24.93 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.1% | 7.3% |
| Selected WACC | 6.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SANWARIA.NS | Sanwaria Consumer Ltd | 24.93 | 0.15 | 0.01 |
| 531069.BO | Vijay Solvex Ltd | 0.03 | 0.12 | 0.12 |
| BANARISUG.NS | Bannari Amman Sugars Ltd | 0.09 | 0.46 | 0.43 |
| DALMIASUG.NS | Dalmia Bharat Sugar and Industries Ltd | 0.4 | 1.65 | 1.22 |
| DHAMPURSUG.NS | Dhampur Sugar Mills Ltd | 1.01 | 1.67 | 0.89 |
| DIAMONDYD.NS | Prataap Snacks Ltd | 0.03 | 0.37 | 0.36 |
| GOKUL.NS | Gokul Refoils and Solvent Ltd | 0.73 | 1.02 | 0.62 |
| MCLEODRUSS.NS | McLeod Russel India Ltd | 5.47 | 1.21 | 0.21 |
| PARAGMILK.NS | Parag Milk Foods Ltd | 0.25 | 0.67 | 0.55 |
| SIMBHALS.NS | Simbhaoli Sugars Ltd | 16.6 | 1.04 | 0.07 |
| Low | High | |
| Unlevered beta | 0.3 | 0.48 |
| Relevered beta | 6.81 | 10.93 |
| Adjusted relevered beta | 4.89 | 7.65 |
SANWARIA.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 SANWARIA.NS:
cost_of_equity (63.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (4.89) + 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.