Prabhudas Lilladher retained a Buy rating on ICICI Prudential Asset Management Company, trimming its target price to Rs 3420 from Rs 3550 after noting a 3.7% core income beat on 48 bps mutual fund yield, weaker net equity flow share at about 11%, and continued strength in PMS and AIF businesses.

ICICI Prudential Asset Management Company Limited clarified that its reported quarterly average alternatives AUM of Rs 809.65 billion at end-September includes only drawn, fee-earning capital and excludes higher committed but undrawn investor pledges across private credit, real estate, private equity and early-stage funds. The company said it earns management fees only when committed capital is called and deployed. It also said it is scaling existing alternatives verticals, has launched a third private-credit fund, is developing pre-leased office real-estate strategies, and is awaiting approvals for its acquisition of ICICI Securities Limited's PMS business.

ICICI Prudential Asset Management Company Limited said redemptions from its mutual funds have increased, hurting net flows even as industry gross sales stayed steady, with systematic transactions falling to Rs 46.72 billion in September from Rs 48.72 billion in June while average mutual fund assets stood at Rs 1.161 trillion.

ICICI Prudential Asset Management Company reported a 6.1% year-on-year rise in Q2 FY27 profit after tax to Rs 889 crore from Rs 838 crore, with revenue from operations up 16.3% to Rs 1,674 crore. Its board declared an interim dividend of Rs 30 per equity share with October 21, 2026 as the record date. For the half year ended September 30, 2026, profit rose 14.3% to Rs 1,854 crore, supported by growth in mutual fund average assets to Rs 11.61 lakh crore.

ICICI Prudential Asset Management Company Limited gained 15.91% in 2026 despite a 14% Nifty 50 decline, supported by SIP-driven earnings, and SBI Securities views it as attractively valued while it trades below its five-year average multiple.

ICICI Prudential Asset Management Company Limited has recently launched a contra fund that buys stocks or sectors the market has turned away from. Chief investment officer S. Naren said contrarian investing can include value, growth or quality stocks, noting a contra fund can buy an underperforming quick-commerce growth business where a value fund could not.