SANWARIA.NS WACC - Weighted Average Cost of Capital

The WACC of Sanwaria Consumer Ltd (SANWARIA.NS) is 7.2%.

The Cost of Equity of Sanwaria Consumer Ltd (SANWARIA.NS) is 78.70%.

The Cost of Debt of Sanwaria Consumer Ltd (SANWARIA.NS) is 5.00%.

	Range	Selected
Cost of equity	60.00% - 97.40%	78.70%
Tax rate	12.70% - 13.50%	13.10%
Cost of debt	5.00% - 5.00%	5.00%
WACC	6.5% - 7.9%	7.2%

WACC

SANWARIA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	6.39	9.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	60.00%	97.40%

Tax rate	12.70%	13.50%
Debt/Equity ratio	24.93	24.93
Cost of debt	5.00%	5.00%

After-tax WACC	6.5%	7.9%


Selected WACC	7.2%

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 (78.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (6.39) + 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.