SRHHYPOLTD.NS WACC - Weighted Average Cost of Capital
The WACC of Sree Rayalaseema Hi-Strength Hypo Ltd (SRHHYPOLTD.NS) is 15.8%.
| Range | Selected | |
| Cost of equity | 14.5% - 17.3% | 15.9% |
| Tax rate | 25.1% - 25.6% | 25.35% |
| Cost of debt | 7.5% - 13.2% | 10.35% |
| WACC | 14.3% - 17.3% | 15.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.91 | 1.02 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.5% | 17.3% |
| Tax rate | 25.1% | 25.6% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 7.5% | 13.2% |
| After-tax WACC | 14.3% | 17.3% |
| Selected WACC | 15.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SRHHYPOLTD.NS | Sree Rayalaseema Hi-Strength Hypo Ltd | 0.01 | 1.49 | 1.48 |
| 500012.BO | Andhra Petrochemicals Ltd | 0.17 | 1.42 | 1.26 |
| 506687.BO | Transpek Industry Ltd | 0.1 | 0.8 | 0.75 |
| 526159.BO | Nikhil Adhesives Ltd | 0.14 | 1.2 | 1.09 |
| AGARIND.NS | Agarwal Industrial Corporation Ltd | 0.3 | 1.19 | 0.97 |
| APCOTEXIND.NS | Apcotex Industries Ltd | 0.09 | 0.77 | 0.72 |
| JOCIL.NS | Jocil Ltd | 0.04 | 1.96 | 1.91 |
| KINGFA.NS | Kingfa Science and Technology (India) Ltd | 0.01 | 0.95 | 0.94 |
| SPTL.NS | Sintex Plastics Technology Ltd | 37.04 | 0.87 | 0.03 |
| VISHNU.NS | Vishnu Chemicals Ltd | 0.1 | 0.65 | 0.61 |
| Low | High | |
| Unlevered beta | 0.86 | 1.02 |
| Relevered beta | 0.87 | 1.03 |
| Adjusted relevered beta | 0.91 | 1.02 |
SRHHYPOLTD.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 SRHHYPOLTD.NS:
cost_of_equity (15.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.91) + 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.