Voltas is winning in its product segment strategy as it is able to meet demand across the pyramid i.e. mass (window), mass premium (fixed speed and inverter) and premium (7 star products for EESL). This is in contrast with peers who have migrated towards inverters and 5-star products. Low channel inventory drives visibility for robust growth in 2HFY20. Besides, robust growth in order book is expected to drive recovery in EMPS business. Voltas delivered another strong show in its UCP business while EMPS business was weak. Low channel inventory for RAC supported growth in an off-season quarter (expect it to sustain over 2HFY20). Robust growth in order book signals a recovery in project business. We value Voltas on SOTP basis, valuing EMPS/EPS/UCP at 17/20/35x on Sep-21E EPS and Volt-Beko at 1x P/S, translating to a TP of Rs 742. Maintain BUY.