TANTIACONS.NS WACC - Weighted Average Cost of Capital
The WACC of Tantia Constructions Ltd (TANTIACONS.NS) is 9.9%.
| Range | Selected | |
| Cost of equity | 34.6% - 80.9% | 57.75% |
| Tax rate | 0.0% - 0.0% | 0% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.6% - 13.3% | 9.9% |
| Category | Low | High |
| Long-term bond rate | 7.2% | 7.7% |
| Equity market risk premium | 8.8% | 9.8% |
| Adjusted beta | 3.1 | 7.4 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 34.6% | 80.9% |
| Tax rate | 0.0% | 0.0% |
| Debt/Equity ratio | 10.81 | 10.81 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.6% | 13.3% |
| Selected WACC | 9.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TANTIACONS.NS | Tantia Constructions Ltd | 10.81 | 0.17 | 0.01 |
| 522134.BO | Artson Engineering Ltd | 0.08 | 1.5 | 1.4 |
| 533167.BO | Coromandel Engineering Company Ltd | 0.11 | 1.64 | 1.47 |
| 539894.BO | Madhav Infra Projects Ltd | 0.41 | 0.65 | 0.46 |
| 542057.BO | BCPL Railway Infrastructure Ltd | 0.48 | 0.84 | 0.57 |
| JYOTISTRUC.NS | Jyoti Structures Ltd | 0.9 | 2.21 | 1.16 |
| NILAINFRA.NS | Nila Infrastructures Ltd | 0.06 | 1.49 | 1.41 |
| NIRAJ.NS | Niraj Cement Structurals Ltd | 0 | 1.4 | 1.4 |
| SETUINFRA.NS | Setubandhan Infrastructure Ltd | 6.51 | -0.6 | -0.08 |
| TARMAT.NS | Tarmat Ltd | 0.07 | 1.02 | 0.95 |
| Low | High | |
| Unlevered beta | 0.8 | 1.25 |
| Relevered beta | 4.13 | 10.55 |
| Adjusted relevered beta | 3.1 | 7.4 |
TANTIACONS.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 TANTIACONS.NS:
cost_of_equity (57.75%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (3.1) + 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.