Balu Mahendra Naga Chaitanya is always the top ranker in his college. Mahalakshmi Tamanna, his cousin comes to Balu’s house to continue her studies. She is in awe of her Mr. Perfect 'Bava' and takes his help to achieve big in studies. Surprisingly, she surpasses him and becomes the first ranker. Balu gets deeply hurt by this and he resorts to cunning ways to deviate Mahalakshmi. But to his surprise Ajith Anand stands first this time. Meanwhile Mahalakshmi's father brings her a marriage proposal, but she doesn’t want to marry him. Balu and Mahalakshmi compromise by agreeing to help each other. Balu helps her in getting the proposal canceled and Mahalakshmi starts deviating Ajith from studies for the sake of Balu, but Balu gets tempted to her in bathroom. When the couple is heading to fall in love, Mahalakshmi unknowingly hurts the ego of Balu and they get separated.