Larsen And Toubro Stock Leads Nuclear Energy Picks For India Power Demand

Higher for longer interest rate expectations have pushed many investors toward assets that can support stable, large scale power. Nuclear energy stocks sit right at that crossroads, supplying baseload electricity in a world wrestling with stubborn inflation and energy security questions. This article highlights three stocks from the Nuclear Energy Stocks screener that showcase different ways to get exposure to this theme.

The three nuclear energy stocks highlighted next are just a sample from this theme, and the full screen surfaced 19 more companies with equally compelling narratives that are not covered in this article. To identify and analyze the highest conviction opportunities in this space, head straight to the Nuclear Energy Stocks screener.

Kirloskar Oil Engines (NSEI:KIRLOSENG)

Kirloskar Oil Engines is a Pune based power equipment company that supplies diesel engines, gensets, pumps and energy solutions for sectors such as infrastructure, data centers, agriculture, defense and manufacturing in India and overseas. It is primarily a business to business player, with the B2B segment generating about ₹56.9b of revenue, while B2C contributes around ₹11.4b and Financial Services about ₹8.8b. The stock is a large cap with a market value of roughly ₹326.9b.

Investors looking at nuclear and critical power themes may find Kirloskar Oil Engines interesting because it sits at the heart of backup power for hyperscale data centers, infrastructure projects and export heavy industrial demand. Analysts still see room for earnings and return on equity to improve. At the same time, the stock trades on a rich valuation with reliance on diesel technology, uneven dividend history and funding that leans on external borrowing. The growth story and the recent 192 MW data center order therefore come with execution and balance sheet questions that deserve a closer look.

Kirloskar Oil Engines sits at an inflection point, with diesel heritage feeding into data center and infrastructure growth. Get the full story on how that 192 MW order fits into the bigger picture in the analysis report for Kirloskar Oil Engines

Build your own nuclear power shortlist

Kirloskar Oil Engines and the other two stocks in this list all surfaced from a simple screen, but the real edge comes when you shape the filters yourself. Use our Screener to combine factors such as valuation, growth, balance sheet strength and dividends into your own hunting ground, or tap into any of our curated Investing Ideas.

Larsen & Toubro (BSE:500510)

Larsen & Toubro is a Mumbai headquartered engineering giant that builds everything from metros and high rises to refineries, offshore wind platforms and defence systems, while also supplying digital and tech services. Most revenue comes from Infrastructure & Utilities at about ₹1,348.6b, followed by Energy, both conventional and clean, at around ₹566.8b, Technology, Platforms & Services at roughly ₹565.6b, Financial Services at ₹189.2b, and Manufacturing & Products at about ₹148.6b. The company is a heavyweight in Indian markets with a market value of roughly ₹5,571.6b.

Larsen & Toubro gives you exposure to a rare mix of large scale infrastructure, clean energy, defence and digital services, backed by a record order book and a growing pipeline in areas like offshore wind, data centers and green hydrogen. Recent wins across oil and gas, urban high rises and metals are one element of this multi year visibility. Consolidated margins and return on equity sit in a solid mid teens range. The trade off is meaningful exposure to government and Middle East contracts, execution risk on complex EPC jobs and an uneven dividend record, along with a valuation that already reflects much of the current growth story. The key issue for investors is how these factors influence the next phase of L&T’s earnings power and cash generation.

Momentum in Larsen & Toubro’s order book looks powerful, yet the real story lies in how that momentum supports earnings quality and cash generation. Get the full 2 key rewards and 1 important warning sign and see what could shift the narrative next.

Bharat Heavy Electricals (BSE:500103)

Bharat Heavy Electricals is a New Delhi based engineering company that builds and services power plants and industrial systems across coal, gas, hydro, nuclear and renewables, along with equipment for rail, defence, aerospace and energy storage. It generates most of its revenue from the Power segment at about ₹274.3b, with the Industry segment contributing around ₹85.7b. The stock is a large cap with a market value of roughly ₹1,431.1b.

Bharat Heavy Electricals has caught investor attention because earnings have moved from a loss a year ago to a profit in Q1 FY2026-27, supported by higher quality earnings growth and a bigger role in projects linked to energy transition and grid stability. New orders in supercritical thermal, large gas turbine packages and a partnership for alkaline electrolyzers in green hydrogen indicate a growing project pipeline. At the same time, the company has a heavy reliance on external borrowings, a P/E multiple that already reflects significant optimism, and a board that currently lacks independent directors. For investors following nuclear and broader power themes, the key consideration is how this mix of growth opportunities and governance and balance sheet risks aligns with their own objectives and risk tolerance.

Bharat Heavy Electricals has earnings momentum and a swelling project pipeline that many investors may be only half pricing in. Get the analyst forecasts for Bharat Heavy Electricals and see how one underappreciated risk could flip the script

Seeking Alternatives Beyond Nuclear Ideas

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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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