June 2025 Household Spending and Dwellings Approval Data Bode Well for Consumer and Construction Sectors

This report is an updated version of the report published on 7 August 2025 at 12:39 PM AEST.

Company Overview

Company Overview: Domino’s Pizza Enterprises Limited (ASX: DMP) is one of the largest franchisees of Domino’s outside of the United States. The company holds the master franchise rights to Domino’s brand and network in various countries. Duratec Limited (ASX: DUR) is an Australia-based contractor providing assessment, protection, remediation, and refurbishment services to a range of assets and infrastructure. Its multidisciplined capabilities combine engineering experience with project delivery expertise and use a range of in-house assessment technologies, including 3D capture and modelling technology with predictive analysis tools. Kalkine’s Sector Report covers the Investment Summary, Sector Overview & Supporting Catalysts, Data Insights & Analysis, Financial Metrics, Financial Commentary, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on selected stocks.

Investment Summary

Sector Overview and Supporting Drivers

Australia’s consumer sector is a vital component of the national economy, encompassing both discretionary and staple goods and services. It is driven by household spending patterns, population growth, and shifts in consumer behaviour. The sector includes industries such as retail, food and beverages, health, travel, and e-commerce. Macroeconomic factors like interest rates, inflation, and wage growth significantly influence demand. While digital transformation and sustainability trends are reshaping the sector, challenges such as cost pressures, supply chain disruptions, and changing consumer preferences persist. Overall, the sector remains dynamic, with growth opportunities tied closely to economic conditions and evolving lifestyle trends.

Australia’s construction sector plays a critical role in supporting economic growth, infrastructure development, and urban expansion. It spans residential, commercial, industrial, and civil infrastructure projects, driven by population growth, government spending, and private sector investment. Key catalysts include infrastructure initiatives, housing demand, and sustainability-focused building trends. However, the sector faces challenges such as labour shortages, rising material costs, regulatory complexity, and project delays. Technological adoption, including modular construction and digital design tools, is gradually improving productivity. As Australia targets increased housing supply and decarbonisation, the construction sector remains central to delivering long-term development and economic resilience across the nation.

Sector Catalysts

Index Performance

Investment theme and stocks under discussion (DMP, DUR)

After understanding the sectors, let us now look at two companies from the Consumer and Construction sectors listed on the ASX. The price potential of the companies under discussion have been analysed based on EV/Sales and Price/Cash Flow Per Share based relative valuation methods.

 1. ASX: DMP (Domino’s Pizza Enterprises Limited)

(Recommendation: ‘Speculative Buy’ at AUD 19.01; Potential Upside: Low Double-Digit; MCap: AUD 1.77bn)

DMP is one of the largest franchisees of Domino’s outside of the United States. The company holds the master franchise rights to Domino’s brand and network in various countries.

The stock has witnessed a rise of ~3.04% in last one month, and over the past six months, it has fallen by ~49.34%. The stock has a 52-week low and 52-week high of AUD 14.80 and AUD 37.420, respectively and is currently trading below the 52-week high-low average.  DMP was last covered in a report dated ‘10 July 2025’.

2. ASX: DUR (Duratec Limited)

(Recommendation: ‘Hold’ at AUD 1.460; Potential Upside: Low Double-Digit; MCap: AUD 365.35mn)

DUR is an Australia-based contractor providing assessment, protection, remediation, and refurbishment services to a range of assets and infrastructure. Its multidisciplined capabilities combine engineering experience with project delivery expertise and use a range of in-house assessment technologies, including 3D capture and modelling technology with predictive analysis tools.

The stock has increased by ~1.42% in last one month, and over the past six months, it has corrected by ~12.56%. The stock has a 52-week low and 52-week high of AUD 1.115 and AUD 1.780, respectively and is currently trading close to its 52-week high-low average.  DUR was last covered in a report dated ‘3 July 2025’.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 7 August 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.