3 Indian Nuclear Energy Stocks Linked To Rising Power And Infrastructure Demand

With central banks holding rates high, bond yields at multi year peaks and energy costs back in the spotlight, many investors are looking for power sources that do not rely on oil or gas markets. Nuclear energy stocks bring together uranium supply, fuel enrichment and reactor operators that aim to provide steady baseload electricity with low direct emissions. This Nuclear Energy Stocks screener helps you filter that universe into a focused shortlist. In this article, you will see 3 stocks from the screener that present different ways to gain exposure to the nuclear theme.

Larsen & Toubro (BSE:500510)

Overview: Larsen & Toubro is a Mumbai based engineering and construction group that delivers large scale infrastructure, energy and hi tech manufacturing projects, ranging from transport, power transmission and renewables to process plants, defence systems and industrial equipment in India and overseas.

Operations: Larsen & Toubro generates most of its revenue from Infrastructure Projects at ₹1,354.2b, followed by IT & Technology Services at ₹545.7b, Energy Projects at ₹549.0b, Financial Services at ₹178.5b and Hi Tech Manufacturing at ₹144.9b, with additional contributions from Development Projects and Others.

Market Cap: ₹5,218.8b

Larsen & Toubro stands out in the nuclear and clean energy theme because it combines a large infrastructure and hydrocarbon order book with exposure to green hydrogen, data centers and defence. This can give investors a mix of steady project revenue and higher margin tech and manufacturing work. International orders, especially from the Middle East, now make up roughly half of revenue. This broadens the opportunity set but also ties the company to geopolitical and funding risks in that region. Earnings growth, net profit margins at 6.1% and a return on equity of 16.1% indicate that the company is converting scale into profitability, while the current valuation already reflects some of these factors.

Larsen & Toubro’s mix of global infrastructure, energy projects and hi tech manufacturing suggests a story that many investors only half see, and the real question is what the 2 key rewards and 1 important warning sign might be hiding

MTAR Technologies (NSEI:MTARTECH)

Overview: MTAR Technologies is a Hyderabad based precision engineering company that supplies high tolerance equipment, components and assemblies used in nuclear reactors, space programs, defence platforms, clean energy fuel cells, medical devices and industrial machinery for customers in India and overseas.

Operations: MTAR Technologies generates its revenue primarily from Manufacturing High Precision and Heavy Equipment, Components, Machines at ₹8,762.06m.

Market Cap: ₹180.7b

MTAR Technologies gives you exposure to several nuclear and clean energy trends in one place, from critical reactor components for India’s civil nuclear build out to fuel cell assemblies for global customers. Recent large international purchase orders worth roughly ₹27,462.6m, along with upgraded guidance for FY2027 revenue growth, show how quickly its order book can scale. However, they also increase execution risk and working capital strain in a business already carrying high receivable days and relying on external borrowing. Customer concentration around a handful of nuclear, defence and clean energy clients, plus heavy capex for new facilities, means the rich valuation leaves little room for missteps. That is where the real investment debate around MTAR starts.

MTAR Technologies’ surging order book and upgraded FY2027 targets hint at a business that could be scaling into a different league, but the real story sits inside the analyst forecasts for MTAR Technologies, including what those numbers might be hiding

Bharat Heavy Electricals (BSE:500103)

Overview: Bharat Heavy Electricals is a New Delhi based power equipment manufacturer that supplies complete coal, gas, hydro, nuclear and solar power plants, along with rail and transmission systems, defence and aerospace products, industrial systems and energy storage and e mobility solutions in India and abroad.

Operations: Bharat Heavy Electricals generates most of its revenue from Power at ₹274,273.5m, with additional revenue from Industry at ₹85,656.4m.

Market Cap: ₹1,427.1b

Bharat Heavy Electricals interests investors who want exposure to large scale power and industrial equipment tied to nuclear, thermal and renewable projects. Earnings growth has been very strong recently and forecasts point to solid growth in both earnings and revenue. The company has moved from a loss to a profit, with net profit margins at 6.8% and high quality earnings, supported by sizeable orders in supercritical thermal power, gas turbine packages and a collaboration with thyssenkrupp nucera on alkaline electrolyzers for green hydrogen in India. However, a high P/E multiple, funding that depends entirely on external borrowing, an unstable dividend history and a board with no independent directors mean the real story is more complex than the headline growth suggests.

Bharat Heavy Electricals looks like a turnaround story with earnings strength and a rich P/E that invites questions, and the real tension sits inside the analyst forecasts for Bharat Heavy Electricals that could be masking a crucial twist

The three stocks in this article are only a starting point, and the full Nuclear Energy Stocks screener on Simply Wall St highlights 18 more companies with equally compelling nuclear energy narratives through the Nuclear Energy Stocks screener. Use the screener to identify, filter and analyze the specific catalysts and storylines that matter most to you so you can focus on the nuclear stocks that best match your highest conviction ideas.

Take Control of Your Investment Journey

If MTAR Technologies or any of these companies have caught your attention, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value and track any new developments as they happen. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Beyond Nuclear?

Fresh stock ideas can gain momentum quickly, so do not wait until the best entries are gone. Scan these curated lists while it matters and get in early.

• Spot potential turnarounds with strong cash generation by reviewing the curated 235 high quality undervalued stocks before the crowd starts bidding them up.
• Consider opportunities for long term compounding income streams by scanning the hand picked 454 dividend fortresses while yields and coverage still look appealing.
• Position ahead of potential infrastructure shifts by checking the focused 36 power grid technology and infrastructure stocks while grid upgrade and electrification themes remain in focus.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com