Hidden beneath the noise, lesser-known names like Srichakra Cement, Omansh Enterprises, and Swadeshi Industries have rewarded bold investors with eye-popping gains of 250–400%.
As retail interest in these low-priced bets heats up, the hunt is on for the next set of multibaggers.
For those looking beyond the noise and into value, here are five fundamentally strong penny stocks to keep on your radar.
These stocks are filtered using Equitymaster’s stock screener –Fundamentally strong penny stocks.
#1 NBCC (India)
NBCC is a government of India navratna enterprise under the ministry of housing and urban affairs.
It operates in three major segments – project management consultancy, engineering procurement & construction, and real estate.
Globally, the company has a presence in Maldives, Mauritius, Seychelles, Dubai, and Jeddah.
As of January 2025, the company has consolidated an order book of ₹1 trillion.
On the financial front, the company’s financials have seen a healthy growth.
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Between FY20 and FY24, NBCC India’s revenue and net profit have grown slowly at a CAGR of 1% and 1.1%, respectively.
The company has demonstrated consistent financial strength, with an average RoE of 13.6% and RoCE of 32.1%.
The company on 26 March 2025, signed a memorandum of understanding (MoU) with Mahatma Phule Renewable Energy and Infrastructure Technology Ltd to jointly undertake consultancy, EPC, fee-based, and redevelopment projects across Maharashtra.
The estimated value of these projects stands at ₹250 billion, with execution planned in phases over the next three to five years.
The company is actively exploring opportunities with various state governments and PSUs for the redevelopment of their land parcels across India.
#2 Motherson Sumi Wiring
The company provides full-system solutions to original equipment manufacturers (OEMs) in the wiring harness segment.
It offers a variety of harnesses for different vehicles including passenger and commercial vehicles, two and three-wheelers, farm equipment and off-road vehicles. Its services encompass three-dimensional (3D) computer-aided design and more.
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Over past three years, Motherson Sumi Wiring revenue surged at an impressive CAGR 28.4%. Meanwhile, its net profit has saw a CAGR growth of 17.2%.
Going forward, the company plans to improve its finances.
#3 Electrosteel Castings
The company manufactures and supplies ductile iron (DI) pipes and fittings for water infrastructure projects. They also produce cast iron (CI) pipes, cement, and ferroalloys.
Electrosteel Castings has a presence in over 110+ countries across the globe.
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Its revenue grew at a CAGR of 22.6% from FY20 to FY24, while net profit grew from ₹863 to ₹7,402 in FY24.
The company maintained good financial health, with an average RoE of 6.6% and RoCE of 12.1%.
Going forward, the company plans to expand its DI pipe manufacturing capacity to 1 million tons. This expansion involves a total of 1 lakh tons being added to the existing capacity.
The company is also actively pursuing its capex plan, with progress as per schedule, aiming to enhance overall DI pipe production.
#4 HCC
Hindustan Construction Company is an Indian multinational engineering and construction company specializing in large-scale infrastructure projects.
It has contributed to India’s 26% hydropower capacity and over 60% of its nuclear power generation capacity.
HCC is involved in the construction of several nuclear power plants in India, supporting the Department of Atomic Energy (DAE) and NPCIL.
The company, through its subsidiaries, is principally engaged in the business of providing engineering and construction services, real estate, and infrastructure.
On the financial front, HCC’s revenue and net profit have fallen over the years.
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Recently, HCC on 20 March 2025 Hindustan Construction Company (HCC) and Tata Projects Ltd. (TPL) in a 50:50 joint venture have been awarded a pumped storage project worth ₹24.7 billion in Maharashtra.
The scope of work includes civil works and other appurtenant works required for completion of the project consisting of infrastructure works along with review and interface of electromechanical works.
Going forward, HCC is exploring opportunities in nuclear power, with an estimated ₹150-200 billion of annual opportunities in the civil segment.
#5 Suzlon Energy
The company is one of the leading global renewable energy solutions providers. It is a vertically integrated wind turbine generator (WTG) manufacturer.
It has installed over 20 GW of wind energy in 17 countries and over 111 wind farms with a capacity of 13,880 MW.
In addition to manufacturing, the company provides end-to-end wind project planning and execution services, covering wind resource assessment, infrastructure development, power evacuation, and technical planning.
It also offers operations and maintenance (O&M) services both in India and international markets.
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While its revenue rose at a CAGR of 5.4%, it turned profitable over the years.
The company has maintained strong financial health, with an average RoE of 55.9% and RoCE of 46.5%.
In April 2025, it secured a 378 MW wind energy project from state-run NTPC Green Energy.
As part of this contract, Suzlon said it will supply 120 S144 WTG with hybrid lattice towers (HLT), each with a rated capacity of 3.15 MW, and also undertake foundation, erection, and commissioning for the project along with providing maintenance and services.
Looking ahead, the management expects order inflows to remain strong, especially from the commercial & industrial segment before transmission waivers reduce to 75% in June 2025.
Conclusion
Investing in fundamentally strong penny stocks can be tempting—they’re affordable and sometimes show signs of big potential. But it’s important to stay grounded.
While some of these companies do turn things around and grow, many come with risks like low liquidity and sharp price swings.
Therefore, such investments should be approached with caution, backed by thorough research, and ideally form only a small portion of a diversified portfolio.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy Investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com