Nuclear Energy Stocks Gaining Attention As India Builds Out Critical Power Equipment

Global bond markets are reacting to persistent inflation pressures and higher energy costs, with yields in several major economies now elevated as central banks hold a cautious line. That kind of backdrop puts reliable, low carbon baseload power in sharp focus for long term capital. This article looks at nuclear energy stocks and highlights three picks from the Nuclear Energy Stocks screener that investors may want on their watchlist.

The three nuclear energy stocks below are just a starting sample, and the full screen surfaced 19 more companies with equally detailed narratives that are not covered here. To identify and analyze the highest conviction ideas in this theme, 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 and gas engines, gensets, pumps and related services for sectors ranging from infrastructure and data centers to agriculture and marine, including backup power and control systems for nuclear facilities. Most of its revenue comes from the Business to Business segment at about ₹58.98b, with smaller contributions from Business to Customer at about ₹11.48b and Financial Services at about ₹8.93b. The company has a market cap of roughly ₹302.38b.

Kirloskar Oil Engines provides exposure to the less crowded side of the nuclear energy story, where reliable backup gensets, modular power systems and service contracts help keep critical reactors running safely when the grid does not. The company is focusing on higher margin engines, aftermarket services and large orders such as the recent 192 MW data center deal. These areas can influence cash generation and dividend capacity. At the same time, dependence on diesel technology, relatively high borrowing risk and tight interest coverage mean investors may want to monitor how it funds larger nuclear and infrastructure projects. For investors looking at a nuclear linked supplier with both potential growth drivers and execution questions, Kirloskar Oil Engines may merit closer review.

Accelerating orders in data centers and nuclear backup make Kirloskar Oil Engines look like a quiet compounder, and the real story sits in its cash generation and balance sheet. Get the full picture in the Kirloskar Oil Engines financial health report

Build your own nuclear power shortlist around Kirloskar Oil Engines

Kirloskar Oil Engines and the two other nuclear linked stocks in this article all came from a single screen, but the real edge is in shaping filters around what matters most to you. Use our flexible Screener to combine valuation, growth, balance sheet, risks and dividends into your own watchlist, or tap into our curated Investing Ideas for ready made starting points.

Larsen & Toubro (BSE:500510)

Larsen & Toubro is a Mumbai headquartered engineering and construction group that runs large EPC projects across infrastructure, energy and high tech manufacturing, including a dedicated line that supplies critical equipment and retrofit systems for nuclear power plants. Most revenue currently comes from Infrastructure & Utilities at about ₹1.35t, supported by Technology, Platforms & Services at roughly ₹565.56b, Energy related work at about ₹566.82b and Manufacturing & Products at around ₹148.61b, with financial services and development projects adding smaller streams. The company has a market cap of roughly ₹5.54t.

Investors looking at nuclear energy infrastructure may be drawn to Larsen & Toubro because its Hi Tech Manufacturing arm builds the engineered components that keep reactors and other critical energy systems running. The wider group brings in sizeable infrastructure, energy and digital orders that support scale. A record order book, growing exposure to clean energy projects and data centers, and a tilt toward higher margin tech services point to solid earnings power that can support this capital intensive niche. The flip side is meaningful reliance on government and Middle East contracts, pressure on project margins and a mixed dividend history. This means you need to judge whether the cash generation and order visibility are strong enough to justify the premium story around its nuclear linked capabilities.

Larsen & Toubro’s growing order visibility and clean energy exposure hint at a bigger earnings story that many investors may be underestimating. Get the full analyst forecasts for Larsen & Toubro to see what could change the script next.

Bharat Heavy Electricals (BSE:500103)

Bharat Heavy Electricals is a New Delhi based power equipment manufacturer that builds everything from coal, gas, hydro and nuclear power plant systems to rail, defence, aerospace and industrial solutions. Its strongest nuclear link sits in EPC services and heavy equipment for reactors, where it supplies steam generators, turbines, condensers, valves and auxiliary systems, although nuclear remains one part of a broader business. Most revenue comes from the Power segment at about ₹274.27b, with the Industry segment contributing roughly ₹85.66b. The company has a market cap of around ₹1.46t.

Investors tracking nuclear energy projects may want Bharat Heavy Electricals on their radar because it already supplies the large turbines, steam generators and condensers that sit at the heart of reactor builds and retrofits. Earnings have shown strong recent momentum and margins are improving, which can matter when bidding for big EPC packages and delivering on complex contracts across power and industrial projects. At the same time, reliance on external borrowing, a mixed dividend record and board changes raise fair questions about how well long cycle nuclear and other mega projects are overseen and funded. The key question is whether this combination of nuclear linked capabilities, earnings recovery and governance risk still adds up for you at today’s valuation.

Bharat Heavy Electricals looks like a nuclear equipment heavyweight whose recent earnings momentum and EPC reach may not be fully priced in. Read the analysis report for Bharat Heavy Electricals to see the one risk that could flip this story.

Seeking Fresh Alternatives Before Others Catch On

Markets move fast and the cleanest entry points rarely stay quiet for long. Review these fresh stock ideas before momentum is fully caught by the crowd.

• Explore high yield opportunities that still look robust by reviewing a curated set of 448 dividend fortresses before income focused investors give them wider attention.
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• Track the companies involved in AI-related activity by scanning the focused 55 AI infrastructure stocks before infrastructure spending trends become more broadly reflected in prices.

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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