** Morningstar initiates coverage on Redox with a fair value estimate of A$4.8, a 14.8% premium to stock's last close on Monday

** Investment research firm rates Redox with "medium" uncertainty

** Redox is a chemical distributor for various industries, including personal care and construction

** Morningstar says the market underestimates the firm's growth opportunities as the largest distributor of chemicals in Australia, serving about 200 subsectors

** Says Redox expected to produce economic profits or return on invested capital above the cost of capital over Morningstar's 10-year forecast period

** Adds co benefits from taking share in a fragmented chemicals market, occurring as other businesses shrink or exit, or with new customers from acquisitions

** Stock has fallen 8.3% so far this year as of last close

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))