Weighted Average Cost of Capital

All figures are in INR unless stated otherwise.

Peer Comps
Debt/ Debt/ Levered Unlevered
Name Country Total Debt Total Equity Tax Rate 1 Equity Capital Beta 2 Beta 3

Hind. Unilever India 1,139.0 611,503.9 30.00% 0.19% 0.19% 1.00 1.00
Nestle India India 279.9 182,975.0 30.00% 0.15% 0.15% 1.00 1.00
Britannia Inds. India 3,037.7 110,690.0 30.00% 2.74% 2.67% 1.00 0.98
Godrej Consumer India 1,164.5 96,256.4 30.00% 1.21% 1.20% 1.00 0.99
Dabur India India 1,068.1 94,940.4 30.00% 1.13% 1.11% 1.00 0.99

Average 30.00% 1.08% 1.06% 1.00 0.99

Median 30.00% 1.13% 1.11% 1.00 0.99

Cost of Debt Cost of Equity

Pre-tax Cost of Debt 8.40% Risk Free Rate 6.50%

Tax Rate 30.00% Equity Risk Premium 8.00%
After Tax Cost of Debt 5.88% Levered Beta 4 1.51
Cost of Equity 18.54%

Capital Structure Levered Beta

Current Target Comps Median Unlevered Beta 0.99

Total Debt 17,440.0 35.09% 42.50% Target Debt/ Equity 73.91%
Market Capitalization 32,265.0 64.91% 57.50% Tax Rate 30.00%
Total Capitalization 49,705.0 100.00% 100.00% Levered Beta 1.51

Debt / Equity 54.05% 73.91% Weighted Average Cost of Capital

1. Tax Rate considered as Marginal Tax Rate for the country Total Cost Total Weight
2. Levered Beta is based on 5 year monthly data Debt Capital 5.88% 42.50%
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate) x Debt/Equity) Equity Capital 18.54% 57.50%
4. Levered Beta = Unlevered Beta*(1+(1-Tax Rate) x Debt/Equity) Weighted Average Cost of Capital 13.16%