Mobius believes Thailand's long-term economic trends, including rising per capita income, will reassert themselves.
"Thailand has a large middle class and a growing consumer population, which we believe bodes well," Mobius said.
Hopes that the junta will deliver some economic goodies are also supporting the market.
"A lot of these investment projects in Thailand, which were such a big part of Yingluck's plan, were stuck because of the political paralysis over the last year or so," Sharma noted. "Many of these projects are being put on the accelerator now by the government there to get economic growth going again."
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To be sure, foreign investors appear fairly unconvinced of the market's merits.
So far this year, foreign investors in Thailand mutual fund and exchange traded funds (ETFs) have pulled out around $1.11 billion, according to data from Jefferies. In 2013, foreign investors pulled around 194 billion baht, or $6 billion, from Thai shares, reversing the inflows from the previous four years.
The market's support is mainly coming from local institutional and retail investors, who have bought a net of around 32.08 billion baht (around $980 million) so far this month.
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"Interest rates are pretty low, deposit rates are pretty low, so investment in the stock market is one of the limited options domestic investors have," Adithep Vanabriksha, deputy chief investment officer at Aberdeen Asset Management in Thailand, told CNBC.
Some analysts are outright negative on the market.
"Investors are effectively expecting a goldilocks outcome," Viktor Shvets, head of strategy research for Asia at Macquarie, told CNBC. "People assume it will just go back to normal, somehow geopolitics sorts itself out. I doubt that will be the case," he said, keeping an underweight call on the market.
Forecasts for 2-3 percent economic growth for this year are "very, very optimistic," Shvets said. "At best, Thailand could do 1 percent. I don't think 14-15 percent earnings per share (growth) estimates are likely either."
Even Morgan Stanley's Sharma said Thailand isn't one of his favorite markets. "The risk reward is somewhat attractive at this stage, but not unusually so," Sharma said.
—By CNBC.Com's Leslie Shaffer; Follow her on Twitter @LeslieShaffer1