This report is an updated version of the report published on 29 August 2025 at 10:59 AM AEST.

Source: REFINITIV

Duratec Limited (ASX: DUR)

Duratec Limited 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.

Recommendation Rationale – SELL at AUD 1.845

• Surpassed Resistance: The stock has crossed its second resistance (R2) of AUD 1.643. Moreover, its 14-day RSI is showing a reading of ~77.18, indicating overbought zone; hence, the stock may face some consolidation before scaling further upside.
• Overvalued Multiples: On a forward 12-month basis - key valuation multiple (P/E) is higher than median of the Construction & Engineering industry.
• Financial Performance: At the end of FY25, DUR's borrowings stood at AUD 35.4mn vs AUD 25.5mn at the end of FY24, resulting in 32% annual increase in finance costs to AUD 3.12mn in FY25. Also, in FY25, revenue from DUR's Mining and Industrial segment declined by 12.2% YoY to AUD 136.6mn vs AUD 155mn in FY24.
• Cyclical Demand Exposure: DUR's earnings depend on government and private sector capital expenditure cycles in infrastructure, defence, mining, and industrial assets. Any slowdown could reduce project pipelines.

DUR Daily Chart

Valuation Methodology: Price/Cash Flow Per Share (FY Jun'26E) (Illustrative)

The stock might trade at a slight premium to its peers, considering the YoY increase in revenue and NPAT in FY25, 130 bps annual increase in gross margin, diversified revenue model, expected synergy from recent acquisition, the stock might trade at a slight premium to its peers.

For conducting valuation, the following peers have been considered: GenusPlus Group Ltd (ASX: GNP), Perenti Ltd (ASX: PRN), Tasmea Ltd (ASX: TEA) and others.

Considering the rally in share price movement, current trading level, and risks associated, the share price can witness resistance at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 1.845, as of 29 August 2025 at 10:16 AM AEST.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. 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 29 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.

Note 5: Dividend Yield may vary as per the stock price movement. 

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.