Nuclear Energy Stocks For Reliable Power Exposure In India

Global bond yields are climbing as investors respond to persistent inflation pressures and higher energy costs, which keeps the spotlight on reliable power sources. Nuclear energy stocks sit at the crossroads of energy security and low carbon demand, and for investors that creates a focused way to seek exposure to long term power trends. This article highlights three nuclear energy stocks from our screener worth a closer look.

The three nuclear energy stocks covered next are just a starting sample, and the full screen surfaced 19 more companies with equally detailed stories that are not covered in this article.

To go deeper into this theme, head straight into the Nuclear Energy Stocks screener to identify, filter and analyze the nuclear energy stocks that best match your own conviction.

Kirloskar Oil Engines (NSEI:KIRLOSENG)

Overview: Kirloskar Oil Engines is a Pune based manufacturer of diesel and fuel agnostic engines, gensets and energy storage or microgrid solutions that provide backup and auxiliary power for critical sites such as nuclear facilities, data centers and infrastructure projects, alongside a wider range of industrial and agricultural equipment and services. Its nuclear theme link comes from supplying on site power generation systems, retrofit and dual fuel kits and related equipment that help keep nuclear plants and other high reliability operations running during grid disruptions.

Operations: Kirloskar Oil Engines generates most of its revenue from the B2B segment at about ₹58,979 million, with smaller contributions from B2C at about ₹11,478 million and Financial Services at about ₹8,932 million.

Market Cap: ₹305.5 billion

Investors looking at nuclear energy stocks may find Kirloskar Oil Engines interesting because it already supplies mission critical backup power, dual fuel kits and microgrid ready solutions that can support nuclear plant auxiliary systems, and it recently secured a large 192 MW data center order that underlines its capability in high stakes environments. The company reports growing revenue but thinner margins, and carries funding and dividend consistency risks, so the story is not without trade offs. The key question for investors is how effectively Kirloskar Oil Engines can convert its product range and export reach into larger, long dated contracts for nuclear related and other critical infrastructure projects, which could reshape the earnings mix over time.

Kirloskar Oil Engines is already wired into critical power for nuclear sites and data centers. Yet the real story could be how that mix reshapes future earnings and risk. Get the 3 key rewards and 3 important warning signs (1 is major!)

Build your own critical power shortlist

Kirloskar Oil Engines and the two other stocks in this article all came from a single screener, but the real value for you is in setting your own rules. Use our flexible Screener to mix filters like valuation, growth, balance sheet strength and dividends, or jump straight into any of our curated Investing Ideas for ready made starting points.

Larsen & Toubro (BSE:500510)

Overview: Larsen & Toubro is a Mumbai based engineering and construction group that delivers large scale infrastructure, energy and industrial projects worldwide. Its Hi Tech Manufacturing segment designs and supplies critical nuclear grade equipment, systems and retrofit solutions for nuclear power plants alongside work in process industries, defence and aerospace. For a nuclear energy themed investor, L&T is a diversified EPC and manufacturing company where nuclear is a focused capability rather than the main revenue engine.

Operations: Larsen & Toubro generates most of its revenue from Infrastructure & Utilities at about ₹1,348.6 billion, with additional contributions from Technology, Platforms & Services at about ₹565.6 billion, Energy Conventional at about ₹566.8 billion, Financial Services at about ₹189.2 billion, Manufacturing & Products at about ₹148.6 billion and Development Projects at about ₹49.7 billion.

Market Cap: ₹5,607.3 billion

Larsen & Toubro provides exposure to nuclear energy through its Hi Tech Manufacturing work on reactor grade components and plant retrofits, while also bringing the scale of a large EPC group with a ₹6.13 trillion order book and increasing international exposure. The same factors that help it win complex nuclear and energy projects, such as deep engineering capabilities and a record of large offshore and onshore contracts, also come with trade offs such as reliance on government and Middle East orders and pressure on project margins. For investors evaluating nuclear themed opportunities, L&T may be considered as a way to pair nuclear equipment exposure with broader infrastructure and energy activity, provided they are comfortable with those execution and funding risks.

Larsen & Toubro’s nuclear and mega project pipeline keeps growing in scope, yet the real story may be how risk and reward stack up across that mix. Start with the 2 key rewards and 1 important warning sign

Bharat Heavy Electricals (BSE:500103)

Overview: Bharat Heavy Electricals is a New Delhi based manufacturer of heavy power equipment that supplies and builds coal, gas, hydro and nuclear power plants, along with a range of industrial systems, transmission gear, rail, defence, aerospace and energy storage solutions in India and overseas. Its clearest link to the Nuclear Energy Stocks theme is the design and EPC delivery of nuclear plant equipment such as steam generators, turbines, heat exchangers and associated systems for reactor projects.

Operations: Bharat Heavy Electricals generates most of its revenue from the Power segment at about ₹274.3 billion, with the Industry segment contributing about ₹85.7 billion.

Market Cap: ₹1,514.7 billion

For investors focused on nuclear infrastructure, Bharat Heavy Electricals offers exposure to the equipment and EPC side of nuclear build out rather than reactor ownership, with a long track record in turbines, steam generators and on site construction for complex plants. Recent quarterly results show revenue of ₹79.1 billion and a swing to a ₹3.8 billion profit, which indicates improving project execution. A collaboration with thyssenkrupp nucera on electrolyzers adds an energy transition angle that can sit alongside nuclear. The flip side is heavy reliance on long cycle government and utility projects, where delays and cost overruns can quickly eat into margins. The key factor is how its order book, especially in nuclear related EPC, evolves from here.

Bharat Heavy Electricals is shifting from loss making projects to a ₹3.8 billion profit, yet long cycle nuclear EPC work can still mask the real story. Walk through the analysis report for Bharat Heavy Electricals

Seeking Alternatives Before The Crowd Moves

Fresh ideas do not stay under the radar for long. Some stocks are already building momentum, others could be close to a breakout. Do not get caught reacting late, act now.

• Spot potential early movers in beaten down sectors and track 265 high quality undervalued stocks before attention floods in and closes the window for attractive entry points.
• Ride structural technology shifts powered by automation and AI by scanning 37 robotics and automation stocks while these potential compounders are still flying below wider institutional focus.
• Target steady income while prices are still dropping or stalled and shortlist 434 dividend fortresses before yield compression reduces the appeal of today’s higher payouts.

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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