Check out: Top 5 largecap stocks which failed to deliver in FY2017

Largecaps witnessed a strong performance and the index soared 20 percent in the past fiscal year. While there are stocks which gave good returns in current market rally, a few stocks in the sector were did not give out much returns.

Moneycontrol takes a look at 5 stocks which failed to deliver during the last fiscal. If you continue to hold it your portfolio, here's how you can approach it.

1. Idea Cellular | Down: 22 percent

The stock had volatile swings during the year and gained momentum after the consolidation buzz with Vodafone emerged. The combined entity was made to take on Bharti Airtel and Reliance Jio. However, it also reacted negatively after the merger between the two was announced, stressing out the scrip. It declined 22 percent in FY17, while its P/E ratio stood at 61 times.

"Idea Cellular was in a severe bear run as it declined 21 percent in FY17 after a massive decline of around 40 percent in the previous financial year. Despite an uptick in voice revenue in Q1FY17, higher capex and pressure on data growth had dented the profitability of the company. Adding to the curse was launch of Reliance Jio, which led to drastic changes in telecom industry. We maintain a neutral stance on the stock in the coming financial year," said Harshit Mantri of Stewart & Mackertich Wealth
Management.

Disclosure: Reliance Industries, which owns Reliance Jio, also owns Network18, which publishes Moneycontrol.com.

2. Sun Pharmaceutical | Down: 16 percent

The pharmaceutical major was under pressure after the US drug regulator had observations at its major plants and such developments hurt the stock. The scrip was trading at a P/E ratio of 20 times

"Sun Pharmaceutical hogged the limelight with negative new flows, leading to sharp decline in fundamentals and earnings cut. The unprecedented regulatory issues from the US FDA found that breaches of manufacturing standards in Mohali plant and issues in its Halol unit under the re-inspection category, led to a body blow to the company," Mononita Mitra, Research Analyst at Stewart & Mackertich Wealth Management said

"However USFDA decided to lift the import alert on Mohali facility which raises the possibility of an earlier resolution of Halol facility. This may lead to a gradual revival in fundamentals for Sun Pharma," she said.

3. Infosys | Down: 16 percent

Infosys was in the news on the back of global developments and the fear of protectionist policies on H1-B visa front from US President Donald Trump. The stock was trading at a PE ratio of 16 times.

"Mirroring the trend in IT sector but underperforming the sector by a wide range, Infosys had a tough year and the share price corrected to Rs 900 levels before it recouped with a loss of around 10 percent for the FY17. Throughout the year, Infosys cut their guidance for FY17 to an extent of 8.4-8.8 percent from 11.5- 13.5 percent estimated prior to Q1FY17," Mantri of Stewart & Mackertich Wealth Management said.

"H1-B visas related rhetoric in the US, rising protectionism and anti-globalization sentiments across US and Europe impacted the industry negatively. However, the company may perform in line as the worst is priced into the stock," he added.

4. Bharti Infratel | Down: 15 percent
The stock most recently reacted negatively after Vodafone and Idea announced their merger. Its PE ratio currently stands at 21 times.

"The announcement of Vodafone-Idea merger led to sell off in Bharti Infratel’s on expectation that the company may lose tenancies in the long term and the merger would lead to lower rentals after the carriers rationalize their tower assets which can dampen Infratel’s revenue and EBITDA margins. However, the recent stake sale in the company by the parent at Rs 325 may limit the fall in the stock in the near term," Mantri told moneycontrol.

5. Dr Reddy’s Laboratories | Down: 13 percent

This pharma stock too has seen pressure on the back of actions of the US drug regulator at its plants. The stock was trading at P/E ratio of 40 times.

"Dr Reddy’s Laboratories (DRL) has been an underperformer in the pharmaceuticals space on back of the US FDA getting a warning letter to two of its major facilities which includes the API plant (CTO-6) and SEZ formulation facility at Srikakulam," Sarabjit Kour Nangra of Angel Broking told moneycontrol.

"However, FY2018 onwards, the company is expected to see a bounce in the growth on back of the base effect. But, the stock price has equally dipped on back of the same and current valuations are fair, hence we are neutral," she added.