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Stocks To Buy: Morgan Stanley bets on this multibagger defence stock to rise another 20%Morgan Stanley said the company has a multi-pronged strategy to sustain growth, with a sharp focus on both the domestic market and international expansion across its defence and explosives businesses.By Meghna Sen  February 23, 2026, 9:11:25 AM IST (Published)1 Min ReadShares of Solar Industries India Ltd. opened higher on Monday, February 23, after brokerage firm Morgan Stanley initiated coverage on the stock.

Morgan Stanley began coverage on Solar Industries with an 'Overweight' rating and a price target of ₹16,151 per share. The target implies an upside potential of over 21% from the stock's last closing level on Friday.

Morgan Stanley said the company has a multi-pronged strategy to sustain growth, with a sharp focus on both the domestic market and international expansion across its defence and explosives businesses.

The brokerage expects earnings to clock a 23% CAGR between FY26 and FY30, driven by revenue CAGRs of 36% in the defence segment and 14% in the international explosives business.

Overall, it forecasts revenue, EBITDA and adjusted PAT CAGRs of 20%, 22% and 23%, respectively, over FY26-30.

Morgan Stanley also expects the defence business contribution to rise from 27% in FY26E to 44% by FY30, implying a 36% CAGR, driven by execution of the existing order book and incremental order inflows.

Of the 11 analysts tracking Solar Industries, 10 have a 'Buy' rating, while one has a 'Hold' recommendation.

Shares of Solar Industries India Ltd. ended 0.46% lower on Friday at ₹13,308. The stock has gained over 9% so far in 2026.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Tagsshare market todaySolar industries