GHCL is confident about the prospects for the Soda Ash segment, however global slowdown has impacted the demand scenario. The soda ash market in India is expected to grow at 4%, however, incremental supply and rising imports are expected to weigh on prices. Given the benefit of brownfield expansion, we expect soda ash segment to continue to deliver strong performance going ahead, at the same time the segment margin is expected to decline in the coming quarters from the levels of 33% in 2QFY20, as against management expectation of 30-32%. In addition, weak spinning market will weigh on earnings in 3QFY20, benefit of higher cotton crop is expected to come from 4QFY20 onwards, post which we might see some improvement in the margin of the textile segments. Though we expect near term headwinds likely to weigh on earnings, but current valuation of 6.0x/5.2x FY19E/FY20E earnings, stock offers 16% upside, given its last four years average multiple of 6x. Hence, we recommend BUY (earlier ADD), with an unchanged target price of Rs254.