TARACHAND.NS WACC - Weighted Average Cost of Capital

The WACC of Tara Chand Logistic Solutions Ltd (TARACHAND.NS) is 12.0%.

The Cost of Equity of Tara Chand Logistic Solutions Ltd (TARACHAND.NS) is 12.90%.

The Cost of Debt of Tara Chand Logistic Solutions Ltd (TARACHAND.NS) is 10.05%.

	Range	Selected
Cost of equity	10.30% - 15.50%	12.90%
Tax rate	26.00% - 26.30%	26.15%
Cost of debt	8.10% - 12.00%	10.05%
WACC	9.6% - 14.4%	12.0%

WACC

TARACHAND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.42	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	15.50%

Tax rate	26.00%	26.30%
Debt/Equity ratio	0.2	0.2
Cost of debt	8.10%	12.00%

After-tax WACC	9.6%	14.4%


Selected WACC	12.0%

TARACHAND.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 TARACHAND.NS:

cost_of_equity (12.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + 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.