the stupendous rally this year saw the stock scale a lifetime high of rs 450650 earlier this monthmumbai for twowheeler industry players the last couple of years have been tough as soaring inflation hurt rural demand and also compressed profitability of companies significantly but these challenges did not hold back dalal street bulls from buying stocks of twowheeler companies particularly bajaj auto shares of bajaj auto is the 3rd best performing stock yeartodate with more than 23 returns this is the best returns that the stock has given at least in the last 5 years in 2022 the stock gave over 11 returns followed by negative 6 returns in 2021 advt the stupendous rally this year saw the stock scale a lifetime high of rs 450650 earlier this month the steady gains in the stock since the last year has been backed by continued buying by foreign institutional investorsfiis have increased their stake in the twowheeler major for four consecutive quarters they cumulatively held 1235 stake in the company at the end of march quarter compared to 1049 in the same period last yearearnings catalystone of the reasons driving the stock is expectations of a recovery in both rural and international markets exports form a major chunk of bajaj autos sales and the company faced significant challenges on this front in fy23 despite this the company managed to report a 10 growth in revenue to a record rs 36428 crore primarily because of sustained momentum in the domestic market although fy23 was challenging for exports analysts do see volumes make a comeback in fy24 thus most of them raised their earnings estimates for the company for fy24 and fy25 we believe export volumes have reached their bottom and would pick up once the dollar availability situation improves in the overseas market brokerage sharekhan said analysts believe that bajaj autos diversified geography mix and a strong presence in the domestic premium motorcycle segment will support its operating performance even in a weak business scenario going ahead a rerating could happen as exports recover from the low base and if the triumph launch is successful nomura analyst kapil singh said in his report advt further the companys plans to expand its electric vehicle portfolio will act as another big catalyst to earnings and the stock stock talkdespite the runup the stock has had most analysts find its valuations reasonable and have retained buy on the stock bajajs 17x14x fy24efy25e pe pricetoearnings ratio are reasonable and 45 dividend yield is attractive said jefferies india analyst nitij mangal in his report the brokerage has raised its target price for the stock to rs 5100 from rs 4800 while retaining a buy rating on the stock deven choksey of kr choksey believes that recovery in export markets and further traction in the threewheeler segment will bring back domestic institutional participation in the stock in my viewpoint twowheelers would be a gradual accumulation and should the volume trend sustain then the funds who are under owning