Nuclear energy is useful as it provides a reliable, low-carbon source of electricity that significantly reduces greenhouse gas emissions, contributing to climate change mitigation and energy security.
However, investors should remain aware of the cyclical nature of the industry and the inherent risks involved in commodity-based investments.
Here is a list of a few nuclear stocks that are key players in India’s nuclear energy sector
Hindustan Construction Company (HCC)
Hindustan Construction Company (HCC) is a key player in India’s nuclear energy sector, having constructed 5,780 MW of the country’s total installed capacity. Notable projects include the Kudankulam and Rajasthan Atomic Power Plants.
HCC has also entered the international market through a joint venture with the Rooppur Nuclear Power Plant in Bangladesh. The company claims to have built 65 percent of India’s nuclear capacity, showcasing its significant expertise.
Additionally, HCC is involved in the Integrated Nuclear Recycle Plant at BARC. Overall, HCC is positioning itself as a leader in advancing nuclear infrastructure both domestically and globally.
Turning to the financials of HCC, the company reported revenues of Rs.1,815.95 crore for the quarter ended June 2024 and net loss stood at Rs.2.46 crore. The share price of the company hit an intra-day high of Rs.47.9 on Friday, rising 4.7 percent from its previous close.
Walchandnagar Industries Limited (WIL)
Walchandnagar Industries Limited has been a key player in India’s nuclear power sector for over four decades. The company has supplied critical equipment like calandrias, end shields, moderator heat exchangers, and fuel magazines for various nuclear power plants.
Walchandnagar Industries Ltd has a robust order book exceeding ₹10 billion, with approximately 30% of this attributed to the nuclear sector. WIL is currently expanding its capabilities to cater to the growing nuclear market, supported by India’s ambitious plan to increase nuclear capacity from 7,480 MWe to 22,480 MWe by 2031-32.
Walchandnagar Industries’ involvement in the nuclear energy sector, backed by its technical capabilities, expansion plans, and strategic partnerships, positions the company as a key player in this growing market.
Looking forward to the financials, the company reported revenues of Rs.79.17 crore for the quarter ended June 2024 and net loss stood at Rs.1.73 crore. The share price of the company hit a 5 percent upper circuit limit to Rs.357.05 on Friday.
Sealmatic India Ltd
Sealmatic India Limited, a prominent player in sealing technology, has been actively involved in the nuclear energy sector.
Sealmatic is currently undergoing certification, that will qualify them for critical business in nuclear power plants. Once certified, they will be the only mechanical seal company globally to hold this coveted certification and the second company in India after L&T.
The company has invested heavily in reaching out to markets and geographies by participating in important exhibitions like the Defense Technology Exhibition in Chennai, which is organized with the support of the Department of Defence Production (Ministry of Defence) and Tamil Nadu Industrial Development Corporation (TIDCO).
Turning to the financials of Sealmatic India Ltd, the company reported revenues of Rs.34 crore for the quarter ended March 2024 and net profit stood at Rs.3.6 crore. The share price of the company hit an intra-day high of Rs.605.2 on Friday, rising 3.4 percent from its previous close.
MTAR Technologies Ltd.
MTAR Technologies is a national player in the precision engineering industry. It has a wide range of product portfolios, including 14 kinds of products in the nuclear sector, 6 kinds of products in the space and defence, and clean energy sectors. The company has served customers in the civilian nuclear sector for over 35 years, and relationship with the NPCIL for over 16 years.
The company has supplied fuel machining heads for 220 MW and 700 MW civilian nuclear reactors. MTAR Technologies is expecting to receive an order value of over Rs.500 crore from the nuclear tenders. These tenders will be finalized and are expected to open in June 2024.
The company is planning to refurbish the project of the Tarapur nuclear reactor in the second half of 2024, with an expectation to secure an order value of Rs.130-150 crore. The company is expecting a total order flow of over Rs.650 crore in nuclear segments during FY25 and an overall order book of Rs.1400-1500 crore across all segments.
Financially, MTAR Technologies reported revenues of Rs.128.23 crore for the quarter ended June 2024 and net profit stood at Rs.4.54 crore. The share price of the company hit an intra-day high of Rs.1,743.9 on Friday, rising 0.24 percent from its previous close.
Written by – Siddesh S Raskar
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