We first recommended a buy on Balaji Telefilms at Rs. 43 on 24Apr2013 with report titled Balaji Telefilms: Content is King. We further gave an additional update in a report titled - Balaji Telefilms: Picture Abhi Baaki Hai.

Over last 3 years the stock has gone up from Rs. 43 to Rs. 111 giving a returns of 158%.

At the current levels, Balaji Telefilms is trading at a market cap of Rs. 750+ crores. Balaji also raised Rs. 150 crores (@140 per share) to fund its futuristic online content business.

Even though current business has improved substantially, the current market cap and dilution will limit the upside from here. We therefore suggest to Exit Balaji Telefilms at current levels.

 

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