Right now, a lesser-known investing theme has started to play out following Prime Minister Narendra Modi’s visit to Russia. Reports suggest that Russia & India are discussing building 6 nuclear power units in India. Indian companies have been participating in the nuclear power segment ever since the growing support for nuclear as a low-carbon energy source sent uranium prices 3x since the end of 2020.
Nuclear energy is the fifth largest source of electricity in India, contributing nearly 3% of the total electricity generation. At present, India’s nuclear power generating capacity is 7,480 megawatts (MW), and the government plans to triple it to 22,480 MW by 2031 to meet its net-zero targets. Some of the microcap stocks that will be benefiting from this move of the government are:
Patels Airtemp India Limited
Patels Airtemp India Limited leads the pack with its specialized manufacturing capabilities. The company produces critical heat exchangers and pressure vessels for nuclear plants. They received the prestigious N-Stamp authorization in 2017 for nuclear components. Their revenue has grown at an impressive CAGR of 20% over the last 5 years since entering the nuclear sector. The company serves multiple industries including nuclear power, petrochemicals, and oil & gas. Their expertise in heat transfer systems proves vital for nuclear reactors.
Konstelec Engineers
The company brings strong EPC service capabilities to nuclear projects. They have completed significant work at various nuclear facilities across India. The company executed control systems for KAPP at Nuclear Power Corporation. They also provided lighting solutions for NFC Kota at the Nuclear Fuel Complex. Their client list includes major nuclear institutions like BARC and NPCIL. The company’s experience spans over 250 projects across various industries.
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DP Wires
DP Wires contributes essential components to nuclear power infrastructure. They manufacture specialized steel wires used in nuclear power plants. The company operates a large facility producing 80,000 tons annually. Their distribution network covers eight cities serving over 100 clients. DP Wires maintains strong relationships with the Nuclear Power Corporation of India. They also serve other major infrastructure clients like L&T and NTPC.
Kirloskar Electric Company
Kirloskar Electric Company supplies crucial electrical equipment to the nuclear sector. They manufacture various motors, transformers, and switchgear for power generation. The company serves both the nuclear power and defense sectors actively. Their client base includes NPCIL, BHEL, and other major industrial groups. Kirloskar’s diverse
product range supports various aspects of nuclear power plants. Their expertise in power generation equipment proves valuable for nuclear facilities.
These companies demonstrate India’s growing capabilities in nuclear power technology. Their continued success aligns with the nation’s nuclear energy goals. Each brings unique strengths to support nuclear power development. Government initiatives will likely boost their growth further. Their established positions make them key beneficiaries of nuclear sector expansion.
Written By: Dipangshu Kundu
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