Sudhi Analyst submits: I think Dr. Reddy’s Laboratories ( RDY ) presents an attractive reward/risk opportunity for investors with a 2-3 year horizon. Dr. Reddy’s is on the cusp of major growth RDY fiscal 2010 sales are approximately $1.6 billion. RDY has guided towards a target of 25% ROE and $3 billion in sales by fiscal 2012. In order to get there, I looked for the earnings needed. I make the following assumptions: Net income Margin stays same around historical 13-14% sales ROE guidance for fiscal 2011 will be upped to 25% Thus earnings during the 3 year period needed to achieve the goal would be approximately $1 Billion. See model here . Complete Story
