Top 2 micro-cap stocks to benefit from Nuclear Power theme; are you holding any?

These firms are expected to commit approximately Rs 44,000 crore each to erect new nuclear power generation facilities, targeting an additional capacity of 11,000 MW by the year 2040

The central government plans to extend an invitation to private firms, soliciting investments totaling approximately USD 26 billion into India's nuclear energy sector. This initiative aims to bolster the nation's electricity production from sources that are free of carbon dioxide emissions, as relayed by two sources within the government speaking to Reuters.

Reportedly, discussions are underway with at least five private entities, with four identified as Reliance Industries, Tata Power, Adani Power, and Vedanta Ltd. These firms are expected to commit approximately Rs 44,000 crore each to erect new nuclear power generation facilities, targeting an additional capacity of 11,000 MW by the year 2040.

This injection of funds is projected to propel India towards its objective of allocating half of its power generation capacity to non-fossil fuel sources by 2030, a notable increase from the current 42 per cent.

This endeavor marks a significant milestone as it signifies the first instance of private sector involvement in India's nuclear power domain. Presently, the country's nuclear power infrastructure is overseen by the Nuclear Power Corporation of India Ltd (NPCIL), a public-sector entity managing 7,500 MW of capacity, with commitments to expand by an additional 13,000 MW.

The government envisions a hybrid operational model, wherein private companies will be responsible for investing in the nuclear facilities, acquiring land and water rights, and managing construction activities in areas peripheral to the reactor complexes. Meanwhile, NPCIL will retain authority over the construction, operation, and fuel management of the stations.

Despite India's 2010 agreement with the US for the supply of reprocessed nuclear fuel, negotiations with foreign nuclear power firms such as General Electric and Westinghouse have been impeded by the country's stringent nuclear compensation laws. Presently, nuclear plants contribute less than two percent to India's overall power generation.

Additionally, for investors looking to capitalize on the burgeoning nuclear power theme, micro-cap companies like AMIC Forging and Walchandnagar Industries Ltd present compelling opportunities:

1. AMIC Forging: Renowned for its expertise in manufacturing forged components across diverse industries including Heavy Engineering, Steel, Oil & Gas, Petrochemicals, and Nuclear Power, AMIC Forge boasts a track record of meeting customer demands across various steel categories. The stock recently surged, hitting an upper circuit limit of 5 per cent, demonstrating a noteworthy 26.38 per cent increase over the past week.

2. Walchandnagar Industries Ltd: With a remarkable performance over the past year, marked by a staggering 290 per cent surge, Walchandnagar Industries Ltd (WIL) stands out as a heavyweight in the Heavy Engineering sector. Established in 1908, WIL's operations span strategic domains like Defence, Nuclear & Aerospace, alongside Industrial Products such as Gears, Centrifugals, and Castings. Certified for ISO 9001:2015, WIL's presence extends into sectors like Oil & Gas, Railways, and EPC, offering solutions for Sugar Plants, Co-Generation Boilers, and Cement Plants.

Disclaimer: The article is for informational purposes only and not investment advice.