Irani told CNBC-TV18, "Balaji Telefilms has a very interesting business model and in the days ahead I see large part of its revenues maybe from movie distribution with 2-3 interesting movies lined up over the next 3-4 months as I understand for Balaji. The stock has gone up very sharply because of rumour of a stake sale of Star India selling 25.9% stake, the group in question is ADAG Group as of now both of them have denied it but the fact is the stock has gone up."
He further added, "Earnings wise Rs 2.3 the company has earned, so definitely not attractive in terms of valuation at the present level. But if I was an investor and was looking at only 6-12 months angle, and I see the stock has given me a sharp upmove because of rumour, which as of now is unfounded, so I would use it as an opportunity to exit. But having said the model is interesting and if the investor is ready to take a 2-3 year horizon and if the investor has enough money at his disposal to other opportunities coming his way, then possibly one can continue to hold on because the business model is interesting and they are dynamic entrepreneurs otherwise."
