** Morgan Stanley spotlights chemical distributor Redox RDX.AX as a key small-/mid-cap pick following a resilient 2H25 performance that beat revised expectations despite global volatility

** Brokerage sees RDX entering a more stable earnings phase following post-COVID swings, with FY25 gross margins at 21.6% and organic EPS CAGR of 9% through FY25 to FY28

** Adds, RDX’s valuation doesn’t yet reflect upside from consistent revenue growth, accretive M&A, among others — MS

** However, flags risks including cyclical exposure and margin variability, though the recent speciality push may help offset variabilities

** Upcoming annual general meeting update on October 8 is seen as a catalyst by the brokerage

** Stock in early trade is up 0.4%, trimming YTD losses to 37.9%

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk))