Voltas is winning through better product range 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 healthy growth in the coming quarters. While, RAC supply issue from China will remain overhang in the near term. Gradual recovery in EMPS can be a catalyst to improve overall performance in FY21. Voltas delivered another strong show in its UCP business while lumpiness in EMPS dragged the overall performance. UCP rev/EBIT growth at 14/36% with market share gain was heartening. Voltas has been able to manage rising competition better than its peers. EMPS rev/EBIT was down by 8/46% on account of slow execution (liquidity crisis impacting visibility of payments). While strong order book (40% YoY) gives visibility of ramp up in project business in 1HFY21. We cut EPS estimate by ~5% to factor-in delayed recovery in EMPS. We value Voltas on SOTP basis, EMPS/EPS/UCP at 17/20/35x on Dec-21 EPS and Volt-Beko at 1x P/S, translating to a TP of Rs 724. Maintain BUY.