3 Nuclear Energy Stocks for Data Center Power and Grid Growth

Export led growth in several Asian economies, including Taiwan, South Korea and Malaysia, is putting reliable electricity supply back in the spotlight. That matters for nuclear energy stocks, which sit at the crossroads of power security and long term infrastructure. For investors, this creates a focused way to look at potential beneficiaries of global trade strength. This article highlights three nuclear energy stocks from the screener worth a closer look.

The three nuclear energy stocks covered next are only a sample, and the full screen surfaced 19 more companies with equally focused exposure to uranium, enrichment and reactor infrastructure that are not included in this article. To identify and analyze those additional opportunities with the highest conviction potential, head straight to the Nuclear Energy Stocks screener.

Kirloskar Oil Engines (NSEI:KIRLOSENG)

Kirloskar Oil Engines is a Pune based manufacturer of diesel engines, gensets, pumps and power solutions used across sectors such as infrastructure, data centers, agriculture and defense in India and overseas. The business is primarily driven by its B2B operations, which generated about ₹58,979m in revenue, while B2C contributed roughly ₹11,478m and Financial Services about ₹8,932m. The stock currently carries a market cap of roughly ₹305.3b.

Investors looking at nuclear and power security themes may find Kirloskar Oil Engines worth a closer look because it sits at the heart of backup and distributed power for infrastructure, data centers and defense, capped by a 192 MW data center power order from HyperNext in June 2026. Analysts expect strong earnings growth and healthy return on equity over the next few years. At the same time, the stock trades below some fair value estimates. The flip side is meaningful exposure to diesel technology, margin pressure in parts of the B2C business and higher balance sheet risk from external borrowing. For investors who are focused on dependable power and dividend potential, Kirloskar Oil Engines is a company that may merit more detailed research.

Kirloskar Oil Engines sits at the crossroads of backup power and nuclear-adjacent infrastructure, yet the real story may be how its earnings potential stacks up against current pricing. Get the full picture in the analyst forecasts for Kirloskar Oil Engines

Build your own earnings and power security shortlist

Kirloskar Oil Engines and the two other nuclear focused stocks in this article all came from a single filter, but the real edge is in building your own screen around earnings potential, balance sheet strength and power infrastructure exposure. Use our flexible Screener to set your own rules, or lean on the curated themes in our Investing Ideas.

Larsen & Toubro (BSE:500510)

Larsen & Toubro is a Mumbai headquartered engineering and construction group that handles large infrastructure, energy, hi tech manufacturing and services projects in India and overseas. Most revenue comes from Infrastructure & Utilities at about ₹1,348.6b, followed by Energy Conventional at roughly ₹566.8b, Technology, Platforms & Services at about ₹565.6b, Manufacturing & Products at roughly ₹148.6b, Development Projects at about ₹49.7b and Financial Services at around ₹189.2b. The company is large in scale, with a market cap of roughly ₹5,589.0b.

Investors looking at nuclear linked infrastructure may find Larsen & Toubro interesting because it connects nuclear energy equipment, large hydrocarbon and offshore wind projects, and higher margin tech services in one platform. A record order book, recent wins with ADNOC, ONGC and TenneT, and growing exposure to data centers and green hydrogen point to long duration work that supports earnings and dividend capacity, even if current P/E is above the wider construction sector. The flip side is heavy reliance on government and Middle East contracts, tighter project margins and a newer top management team. The real question is whether this mix of growth projects and funding risk is being priced fairly by the market.

Larsen & Toubro’s record order book and higher margin tech services give the story real momentum, yet pricing still hinges on how the growth, funding and execution puzzle fits together in the 2 key rewards and 1 important warning sign

Bharat Heavy Electricals (BSE:500103)

Bharat Heavy Electricals is a New Delhi based manufacturer of heavy engineering equipment for power generation, transmission, transport, defence and industrial projects in India and overseas. The business is anchored in Power, which contributes about ₹274,274m in revenue, with Industry adding roughly ₹85,656m. The stock is large in scale, with a market cap of about ₹1,469.8b.

For investors following nuclear and grid infrastructure, Bharat Heavy Electricals brings together large power projects, nuclear equipment and fast growing areas like green hydrogen and e mobility. Earnings have swung from a loss to profit, with strong year on year earnings growth and improving margins, helped by big orders from DVC, Meja and Dangote that stretch over several years. The trade off is a rich P/E multiple, an unstable dividend record, a higher risk funding mix and very low board independence, which puts more weight on your own governance comfort. A key consideration is whether the green hydrogen tie up with thyssenkrupp nucera and the current order book justify that valuation and risk mix.

Green hydrogen, e mobility and nuclear equipment give the Bharat Heavy Electricals story real momentum, yet the valuation and funding mix raise big questions that investors should stress test through the 2 key rewards and 1 important warning sign

Seeking Fresh Alternatives Beyond Nuclear?

Some stocks are already building breakout momentum while others are still flying under the radar for now. Consider researching potential opportunities instead of waiting on the sidelines.

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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.

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