Rs 10 Dividend Announced: Can The Payout Light Up This Cigarette & Tobacco Stock As Selling Pressure Mounts?

The Vazir Sultan Tobacco Company Limited was established on November 10, 1930, and on April 30, 1983, it changed its name to VST Industries Limited. The company's registered office is located in Azamabad, Hyderabad. The company primarily manufactures and sells cigarettes and unmanufactured tobacco, and it has manufacturing facilities in Hyderabad and Toopran, Telangana. After VST Industries released a poor set of results for the quarter that ended in March 2025, the company's shares were heavily sold down on Friday. From the previous finish of Rs 330.50, the stock fell 8.62% to Rs 302 a share on NSE. The stock has dropped 11.35% year-to-date (YTD), suggesting that selling pressure continues to exist amid growing bearish momentum. The company has announced a dividend of Rs 10 per share for FY25 despite the bad Q4 performance, but traders must now monitor to see if the payout can save this struggling cigarette stock in the coming sessions.

VST Industries Dividend

"The Board of Directors at their meeting held today recommended a final dividend of Rs. 10/- per equity share of Rs. 10/- each. The dividend will be paid/dispatched within 30 days of the approval of the shareholders at the ensuing 94th Annual General Meeting," said VST Industries in a stock exchange filing.

"Pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 this is to inform you that the Register of Members and Share Transfer Books of the Company will remain closed from 4.7.2025 to 23.7.2025 (both days inclusive) for the purpose of payment of dividend. The 94th Annual General Meeting of the Company has been scheduled to be held on 23rd July, 2025," VST Industries further informed stock exchanges.

VST Industries Q4 Results

In Q4, the cigarette manufacturer's net profit decreased 40% YoY to Rs 53 crore from Rs 88.2 crore in the same period of the previous fiscal year. The March 2025 quarter had net sales of Rs 349.24 crore, a 6.88% drop from the March 2024 quarter's Rs 375.06 crore. EBITDA plummeted 37.07% from Rs. 126.12 crore in Q4FY24 to Rs. 79.37 crore in Q4FY25.

VST Industries Share Price Target

"VST Industries is facing continued weakness, struggling to hold above key levels. The stock is under selling pressure and may slip further if it breaks below ₹295. Resistance lies near ₹310. RSI is weak and momentum remains negative. Traders should avoid fresh longs until clear signs of a trend reversal appear," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

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