Nuclear energy stocks are expected to foster growth and stock market returns due to the global push for clean energy, technological innovations like small-scale nuclear reactors, and increasing government support, which could drive demand and stability in the sector.
These factors, combined with the sector’s potential for long-term contracts and stable cash flows, make nuclear energy stocks an attractive investment opportunity.
Here are three nuclear energy stocks to consider for investment:
Sealmatic India Limited
Sealmatic India has made significant strides in the nuclear energy sector by specialising in mechanical seals for critical pumps. The company excels in designing and developing seals that are vital for maintaining the safety and integrity of nuclear operations.
Notably, Sealmatic supplies high-performance mechanical seals, such as the B750 model, which are engineered to meet the demanding requirements of nuclear power plants.
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.
With a market capitalization of Rs.606 crore, the share price of the company closed at Rs.670 per share, falling 0.72 percent from its previous close.
Sealmatic’s current ROCE (Return on Capital Employed) of 16.1 percent and ROE (Return on Equity) of 11.8 percent indicate potential for future growth.
MTAR Technologies Ltd.
MTAR Technologies is a key player in the precision engineering industry, offering a diverse product portfolio that includes 14 products for the nuclear sector and 6 for the space, defence, and clean energy sectors. The company has supplied fuel machining heads for 220 MW and 700 MW nuclear reactors.
MTAR Technologies anticipates securing orders worth over Rs.500 crore from nuclear tenders expected to open in June 2024. Overall, MTAR is projecting a total order flow of over Rs.650 crore in the nuclear segment during FY25 and an order book of Rs.1400-1500 crore across all segments.
Additionally, the company plans to refurbish the Tarapur nuclear reactor in the second half of 2024, with an expected order value of Rs.130-150 crore.
With a market capitalization of Rs.5,549 crore, the share price of the company closed at Rs.1,804.1 per share, rising 2.83 percent from its previous close.
MTAR Technologies’ current ROCE of 11.4 percent and ROE of 8.37 percent indicate solid financial returns.
Written by – Siddesh S Raskar
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