3 Nuclear Energy Stocks With Exposure To India’s Power Buildout
With inflation data, central bank moves and energy security all pulling markets in different directions, many investors are looking again at nuclear energy stocks as a potential way to get exposure to reliable, low carbon power. The Nuclear Energy Stocks screener focuses on companies involved in uranium production, enrichment and reactor development. This gives you a focused starting point instead of trawling through the entire market. In this article, you will see three of the most interesting stocks from the screener, why each one stands out and how they fit into today’s mix of inflation, rates and energy price pressures.
Larsen & Toubro (BSE:500510)
Overview: Larsen & Toubro is a large engineering and construction group that delivers complex EPC projects across infrastructure, energy, hi tech manufacturing and services, from highways and metro lines to power grids, refineries, defence systems and data centres in India and abroad.
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 smaller contributions from Development Projects and Others.
Market Cap: ₹5,205.5b
Larsen & Toubro gives you exposure to large scale infrastructure, defence and clean energy projects, backed by a sizeable order book, a growing international revenue mix and a push into higher margin digital and tech services. At the same time, its reliance on government and Middle East contracts, use of external borrowing and pressure on project margins mean execution quality and cash generation really matter. Given its current valuation, recent deals in AI infrastructure, defence and power transmission, and analyst expectations for revenue and earnings relative to the broader Indian market, investors may wish to consider how well the share price reflects both the opportunities and the execution and funding risks.
Larsen & Toubro’s mix of mega projects, defence work and AI infrastructure deals can make the story look bigger than the share price implies, but the real signal is in the 2 key rewards and 1 important warning sign
MTAR Technologies (NSEI:MTARTECH)
Overview: MTAR Technologies is a Hyderabad based precision engineering company that builds high tolerance equipment and components for nuclear power reactors, defence, space, clean energy and industrial applications, supplying everything from fuel machining heads and coolant channel assemblies to cryogenic engines and ball and roller screws.
Operations: MTAR Technologies generates its revenue primarily from manufacturing high precision and heavy equipment, components and machines, which contributed ₹8,762.06m.
Market Cap: ₹206.0b
MTAR Technologies sits at the crossroads of nuclear power, clean energy and defence, with recent international blanket purchase orders worth about ₹22,789.6m and additional orders of roughly ₹4,673m, pointing to sizeable work in the pipeline. Earnings growth of 77.8% over the past year and a net profit margin of 10.7% have put the stock on a rich valuation. At the same time, high working capital needs, reliance on a few large customers and debt funded expansion raise the stakes if execution slips. For investors interested in nuclear and energy infrastructure, the key question is whether MTAR’s rising order book, margin potential and exposure to long dated reactor and fuel cell programs justify paying a higher price despite volatility and funding risk.
MTAR Technologies looks like a precision growth story, with that 77.8% earnings jump and strong order pipeline raising a big question: how does the market’s current pricing stack up against the analyst forecasts for MTAR Technologies?
Bharat Heavy Electricals (BSE:500103)
Overview: Bharat Heavy Electricals is a New Delhi based manufacturer that builds and services large scale power plant equipment and industrial systems, covering coal, gas, hydro and nuclear plants, transmission and transportation, defence and aerospace, solar power and battery energy storage for customers in India and overseas.
Operations: Bharat Heavy Electricals generates most of its revenue from Power at ₹254,067.1m, with Industry contributing ₹83,754.7m and the vast majority of sales coming from India at ₹333,262m versus ₹4,559.8m from outside India.
Market Cap: ₹1,456.0b
Bharat Heavy Electricals pulls together several themes that nuclear energy investors often look for, including large EPC roles in thermal and nuclear projects, grid equipment and newer areas like solar and green hydrogen, backed by recent contracts in India and abroad and a collaboration with thyssenkrupp nucera on alkaline electrolyzers. Forecast earnings growth of 37.23% per year and a recent swing back to profit in FY2025-26 have put the stock on a rich P/E, yet net margins are only around 4.7% and returns on equity are still modest, with funding heavily reliant on external borrowing and board independence under scrutiny. The real question is how these growth projects, governance issues and valuation stack up when viewed together.
Bharat Heavy Electricals has earnings growth forecasts of 37.23% a year and only 4.7% margins, so the real story sits in how those projects, funding choices and governance fit together in the analysis report for Bharat Heavy Electricals
The three stocks in this article are only a starting point, and the full Nuclear Energy Stocks screener surfaces 18 more companies in nuclear fuel, enrichment and reactors with equally compelling stories waiting to be picked apart. Use Simply Wall St to analyze, filter and compare those nuclear energy stocks by the catalysts that matter to you so you can identify the highest conviction ideas for your watchlist.
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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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