Duroc AB (publ) (DURC-B.ST) fair value

ACCE thesis

Duroc AB makes technical textiles and protective fabrics for industrial and professional end markets, a niche where specification and certification carry more weight than price. Its 44.5% gross margin is well above what most textile manufacturers earn, which suggests the product mix rests on engineered materials rather than commodity cloth. The problem is the top line: revenue fell 13.3% year over year, and with a 2.5% operating margin and a negative 9.4% return on equity, the business is shrinking and barely profitable at the operating level. A 682M SEK market cap with no index membership and no forward earnings estimate means the name sits outside the coverage most investors rely on, so anyone looking closer will need to rebuild the earnings base from filings. The question for a deeper look is whether the revenue decline reflects cyclical destocking in its customer base or lost share, since the answer determines whether the margin structure can recover.