SIRCA.NS WACC - Weighted Average Cost of Capital
The WACC of Sirca Paints India Ltd (SIRCA.NS) is 9.1%.
| Range | Selected | |
| Cost of equity | 11.1% - 14.1% | 12.6% |
| Tax rate | 26.2% - 26.4% | 26.3% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 8.3% - 9.8% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.51 | 0.67 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.1% | 14.1% |
| Tax rate | 26.2% | 26.4% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 8.3% | 9.8% |
| Selected WACC | 9.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SIRCA.NS | Sirca Paints India Ltd | 1.1 | 1.1 | 0.61 |
| 501477.BO | Muller and Phipps (India) Ltd | 0.05 | 0.09 | 0.09 |
| 530187.BO | Atharv Enterprises Ltd | 0.04 | 0.87 | 0.84 |
| 531842.BO | Lahoti Overseas Ltd | 0.09 | 0.53 | 0.5 |
| 537524.BO | Viaan Industries Ltd | 1.08 | 0.58 | 0.32 |
| 538569.BO | Triveni Enterprises Ltd | 0.05 | 0.17 | 0.16 |
| 539220.BO | Mishka Exim Ltd | 0.01 | 0 | 0 |
| 539884.BO | Darshan Orna Ltd | 0.3 | 0.33 | 0.27 |
| 540492.BO | Starlineps Enterprises Ltd | 0 | 0.15 | 0.15 |
| SREEL.NS | Sreeleathers Ltd | 0.01 | 0.96 | 0.96 |
| VASA.NS | Vasa Retail and Overseas Ltd | 9.03 | 0.67 | 0.09 |
| Low | High | |
| Unlevered beta | 0.16 | 0.32 |
| Relevered beta | 0.27 | 0.51 |
| Adjusted relevered beta | 0.51 | 0.67 |
SIRCA.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 SIRCA.NS:
cost_of_equity (12.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.