The construction sector in India is on a remarkable growth path, fueled by large infrastructure projects, housing demands, and government initiatives like Smart Cities. Making it one of the most exciting spaces for investors in 2025. In fact, as per the recent reports, India’s construction market is expected to reach ₹25.31 trillion (about ₹ 1.4 trillion) in 2025, with annual growth of over 11%.
With so much happening in construction, penny stocks in this space could give investors a low-cost way to benefit from this progress. In this blog, we’ll look at some of the top construction penny stocks that might offer good returns as the country keeps building and developing.
Top construction penny stocks in India
Discussed below are the top construction company penny stocks ranked by their market capitalisation, from lowest to highest, as of July 1, 2025.
| Name | Market cap (₹ Crore) | ROCE (%) | PE Ratio (%) | Latest Quarterly NP (₹ Crore) |
| Dugar Housing Developments Ltd | 1.86 | NA | 46.41 | -0.17 |
| Richa Industries Ltd | 3.79 | -16.82 | NA | -98.89 |
| Ishaan Infrastructure & Shelters Ltd | 5.12 | 0.30 | NA | -0.15 |
| Shelter Infra Projects Ltd | 5.60 | 1.46 | 24.33 | 0.04 |
| Diamant Infrastructure Ltd | 6.55 | 0.41 | 72.78 | 0.02 |
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Dugar Housing Developments Ltd
Dugar Housing Developments Ltd., incorporated in 1992 and headquartered in Chennai, is a prominent real estate company. With over three decades of expertise, the company specialises in constructing properties and building housing complexes.
In 1987, the company set a milestone by creating the first township in South India, featuring 150 independent houses in Chennai. In 2008, Dugar further distinguished itself by becoming the first in India to launch “Affordable Homes,” setting new benchmarks in the sector.
Here is a table of key financials of the company for the financial years ending March 31, 2024, and March 31, 2023:
| Particulars | March 2024 (₹ Crores) | March 2023 (₹ Crores) |
| Total Revenue | 0.0019 | 0.2751 |
| Total Expenses | 0.2044 | 0.2664 |
| Net Profit/(Loss) | (0.2025) | 0.0087 |
| EPS (₹) | -6.75 | 0.29 |
Richa Industries Ltd
Established in 1993, Richa Industries Ltd headquartered in Faridabad, Haryana, is a construction company operating in the Pre-Engineered Building (PEB), Engineering, Procurement & Construction (EPC), and Textile sectors. The company is listed on the Bombay Stock Exchange and holds ISO 9001:2015 certification. It focuses on providing solutions with quality control and timely project completion.
The table below shows Richa Industries Ltd’s important standalone financial figures for March 2024 and March 2023:
| Particulars | March 2024 (₹ Crores) | March 2023 (₹ Crores) |
| Total Revenue | 10.74 | 25.07 |
| Total Expenses | 27.49 | 45.41 |
| Net Profit/(Loss) | (16.76) | (19.71) |
| EPS (₹) | -6.75 | -7.95 |
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Ishaan Infrastructure & Shelters Ltd
Founded in 1995, Ishaan Infrastructure & Shelters Ltd commenced business in Ahmedabad, later expanding to other cities. The company is engaged in all kinds of infrastructure activities, consistently pursuing growth and business development in the sector.
For people looking to invest in the company’s penny stocks, here is a quick rundown of the company’s financial performance for FY25 and FY24:
| Particulars | March 2025 (₹ Crores) | March 2024 (₹ Crores) |
| Total Revenue | 19.50 | NA |
| Total Expenses | 34.47 | 31.45 |
| Profit/(Loss) Before Tax | 1.70 | (11.78) |
| Net Profit/(Loss) | (5.84) | (8.72) |
| EPS (₹) (Diluted) | (0.09) | (0.13) |
Shelter Infra Projects Ltd
Shelter Infra Projects Ltd, with origins dating back to 1972 in Kolkata, is a construction and infrastructure company involved in projects in India and abroad. The company handles construction projects like long-span bridges, overpasses, tunnels, underground tanks, bulk material facilities, thermal power stations, and industrial buildings.
The company’s financial performance for the years ended March 2024 and March 2023 is given below:
| Particulars | March 2024 (₹ Crores) | March 2023 (₹ Crores) |
| Total Revenue | 1.81 | 1.46 |
| Total Expenses | 1.98 | 1.85 |
| Profit/(Loss) Before Tax | (0.17) | (0.39) |
| Net Profit/Loss | (0.19) | (0.40) |
| EPS (₹) (Diluted) | (0.05) | (0.1) |
Diamant Infrastructure Ltd
Established in 1980, Diamant Infrastructure Limited, is a Maharashtra-based company headquartered in Nagpur and specialises in the infrastructure sector. Its primary operations involve working as a subcontractor in road construction projects. Its paid-up capital stands at ₹7.04 crore, with reserves of ₹16.38 crore, resulting in a total net worth of ₹23.61 crore.
A concise overview of the company’s financial results for FY24 and FY23 is as follows:
| Particulars | March 2024 (₹ Crores) | March 2023 (₹ Crores) |
| Total Revenue | 0.20 | 0.97 |
| Total Expenses | 0.26 | 0.98 |
| Profit/(Loss) Before Tax | 0.06 | 0.01 |
| Net Profit/Loss | 0.13 | 0.08 |
| EPS (₹) (Diluted) | -0.04 | -0.02 |
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Conclusion
Now that you’ve read about the top 5 choices for penny stocks in the construction sector, it’s worth noting that these penny stocks can exhibit volatility. Choose wisely, research thoroughly, and you could benefit from the massive growth. These stocks rise and fall with new projects and government moves, showing how small companies can ride the wave of the country’s exciting growth.
FAQs
Construction penny stocks are shares of small-cap construction and infrastructure companies trading at low prices, typically below ₹10–₹20 per share. These stocks belong to firms with limited market capitalization and liquidity. Price movements in such stocks can be sharp, reflecting factors like project updates, sector trends, or economic shifts. Construction penny stocks are often linked to businesses involved in residential, commercial, or infrastructure development, and their performance varies with industry and company-specific developments.
As of July 2025, the top five best construction penny stocks by market capitalisation are Dugar Housing Developments Ltd, Richa Industries Ltd, Ishaan Infrastructure & Shelters Ltd, Shelter Infra Projects Ltd, and Diamant Infrastructure Ltd. These companies are active in areas such as residential housing, pre-engineered buildings, and infrastructure contracting. Their inclusion reflects their current market positions within the Indian construction sector, based on publicly available financial and market data.
Construction penny stocks display high price volatility due to factors like limited liquidity, smaller market capitalization, and sector dependencies. Project delays, economic cycles, and policy changes can strongly impact these stocks, leading to significant price fluctuations. Financial disclosures in smaller companies can be less comprehensive than in large firms, contributing to uncertainty. As a result, price movements can show sharp upward or downward trends depending on company developments and market sentiment.
Government policies related to infrastructure investment, affordable housing schemes, or regulatory changes in construction approvals can significantly affect construction penny stocks. Positive measures, such as increased public spending or incentives for real estate projects, may increase demand for construction services, benefiting small-cap companies. Whereas, stricter regulations or delays in clearances can impact project timelines and cash flows. Changes in policies can therefore lead to notable price fluctuations in these stocks.
Key factors such as recent earnings performance, debt levels, and the company’s business focus provides insights into the current position of the company’s penny stocks before investing in them. Observing updates related to ongoing or upcoming projects, as well as publicly available financial filings, can give an understanding of recent progress or challenges. Awareness of sector trends, including construction demand and related policy developments, can also help in understanding potential influences on these stocks’ performance over time.
