NEW YORK ( TheStreet) -- A good way to enter emerging markets is through ADRs. An emerging market equity-fund manager at Pimco said the valuations for emerging market stocks are cheap. The firm is selectively accumulating positions in these markets.

Based on the MSCI Emerging Markets Index, stocks have been mixed with spots of buying opportunities. With Germany and France pledging support to the European banks, investor sentiment buoyed in emerging markets, taking the MSCI Emerging Markets Index to its biggest four-day gain in 16 months. From its 52-week low of 831.22 on Oct. 4, 2011, the index climbed 6.3% to close at 883.9 on Oct. 7, 2011. At close October 11, the index scaled up to 909.43.

A perfect buying opportunity came when the MSCI Emerging Markets Index slumped 31% with a P/E ratio of 9.4 on Oct. 5, 2011, reversing its 2011 high to hit its lowest level since Dec. 2008, according to data compiled by Bloomberg.

As of close on Oct. 12, 2011, the S&P 500 and Dow Jones gained 2.9% and 3.7%, respectively. Meanwhile, benchmark indices for emerging markets were mixed. India's Nifty added 2.8%, China's Shanghai Composite shed 1.3% and Brazil's Bovespa wiped out 3.3%.

A few emerging market American Depositary Shares generated lucrative returns for investors during the past month, while a few, as per analysts' estimates, have potential double-digit upsides over the next 12 months. We present six such stocks that gained 2% to 17% in the past month. These stocks have potential upside of 7% to 208%, according to the average estimates of analysts surveyed by Bloomberg.

The stocks are arranged in ascending order of one-month gains.

6. Dr. Reddy's Laboratories ( RDY), an integrated pharmaceutical company, focuses on providing therapeutics through its three business units: Global Generics, Pharmaceutical Services and Active Ingredients (PSAI) and Proprietary Products. The stock surged 1.8% during the last month.

Of the three analysts covering the stock, two recommend a buy and one rates it a hold. There are no sell ratings on the stock. Data from Bloomberg has analysts forecasting 33.1% upside to $41.80 in the upcoming 12 months.

In the past month, after the U.S. FDA approval, RDY launched Rivastigmine Tartrate capsules (1.5 mg, 3 mg, 4.5 mg and 6 mg), a bioequivalent generic version of Exelon capsules, in the U.S. market. The Exelon brand and its generic Rivastigmine Tartrate recorded sales of almost $92.6 million in the U.S. for the 12 months ended June 2011, as per data from IMS Health.

Industry analysts believe that export-oriented pharma companies will benefit from the INR weakening to its 28-month low. Companies like RDY earn more than 50% of their revenue from export sales and will benefit with the INR depreciating against major world currencies.

RDY recently declared its intention to expand its portfolio of over-the-counter drugs along with the acquisition of a pharmaceutical plant in Russia. The chief executive said in an interview to the Wall Street Journal that the company plans to increase the share of its OTC products to 40% to 45% from the current 28%.

If you liked this article you might like

There's Still Time to Buy These 5 Breakout Trades

Spirit CEO Hails Aircraft Maker Competition, Will Look at Bombardier CS-100

Bullish and Bearish Reversals for the Week

These 5 Stocks Are Breaking Out

Embraer (ERJ) Weak On High Volume Today