New Delhi, Sept. 25 -- Shares of the defence company and a recent Nifty 50 entrant, Bharat Electronics (BEL), have seen a massive rally in their shares so far in 2025, making it one of the best-performing index stocks. However, this has pushed valuations past the comfortable zone.

BEL share price is holding above the Rs.400 level amid a 37% rally year-to-date (YTD), which has also pushed its market capitalisation closer to Rs.2.95 lakh crore.

Trading at a price-to-earnings ratio of 53.60 times, BEL stock is still undervalued compared to the industry average of 72.46 times, but is significantly higher than the historical average.

Defence stocks have had a stellar year as the India-Pakistan conflict, order wins, and strong pipeline have ...